Biden Supports $1,400 Direct Payments in a $1.9 Trillion Package

Mish

Incoming president Joe Biden seeks $1,400 per-person direct payments and funding for testing and vaccine distribution.

Money Spigots On

The money spigots are on as Biden Proposes $1.9 Trillion Covid-19 Relief Package.

Mr. Biden in a speech Thursday evening plans to lay out priorities related to the pandemic for the early days of his administration. He will urge Congress to back a round of $1,400-per-person direct payments to most households, a $400-per-week unemployment insurance supplement through September, expanded paid leave and increases in the child tax credit. Aid for households makes up about half of the plan’s cost, with much of the rest going to vaccine distribution and state and local governments.

“We will get right to work to turn President-elect Biden’s vision into legislation that will pass both chambers and be signed into law,” Sen. Chuck Schumer, the Democratic leader, and House Speaker Nancy Pelosi (D., Calif.) said in a joint statement.

Mr. Biden is also expected to release a second proposal focused on economic recovery that will also use jobs and infrastructure as a tool to combat climate change, the officials said.

Mr. Biden’s American Rescue Plan calls for additional stimulus checks beyond the $1,200 round approved in March and the $600 set approved in December, sending out an additional $1,400 per person to bring the amount sent to families in the past few months to the $2,000 mark he promised. He would expand eligibility to include adult dependents such as college students who were excluded from previous versions.

In a poverty-fighting move long sought by many Democrats, the child tax credit would rise from $2,000 to $3,000 for this year under his plan, with an additional $600 for children under 6 years old and new rules that would let the poorest households get the full benefit. The plan also includes money to help households with the costs of rent and child care, plus $350 billion for state and local governments.

Mr. Biden will propose to extend the eviction and foreclosure moratorium, which currently goes until the end of this month, through the end of September.

While Mr. Biden supports $10,000 of student loan forgiveness, the current proposal doesn’t include it, an official said. Instead the focus will be on extending student loan forbearance, which allows people to temporarily pause loan payments.

Biden just gave a speech that I watched. He took no questions. 

Video Short Synopsis

Biden Finish

You can Replay the Full 25 minute Video on C-Span.

I will update this post with a transcript and more details of his package as soon as I have them.

Mish

Comments (60)
No. 1-20
Sechel
Sechel

The money spigots are on but for the past four year we spent four years we spent poorly and saw that not spending may have cost us far more. Biden is right, vaccine distribution has been a colossal failure. States need funds to deal with the crisis so they can better test and trace, vaccinate and deal with lost revenue due to Federal government mismanagement. When I look at the Budget deficit growth since Trump became President I'm left scratching my head what was accomplished. At least with Biden I get a sense of where the money is going.

Eddie_T
Eddie_T

Probably decent policy based on where we are right now. It’s late, but way better than the current austerity plan that is doomed to fail.

njbr
njbr

Buying time...

Not health, not lives....

It would be instructive to have an estimate of the value of alternative course where the pandemic had been approached in a serious, coordinated and effective manner.

Daveyp19
Daveyp19

Can anyone provide me a rational explanation why taxing the citizenry at all is necessary if as the MMT proponents insist we can have virtually unlimited fiscal and monetary stimulus/money creation with no downside??

PecuniaNonOlet
PecuniaNonOlet

I am 100% sure all the trumpers and republicans that hate “socialism” will give that money back immediately, especially all those people in rural areas that are self-sufficient.

Felix_Mish
Felix_Mish

Well, 1400 times 330 million is 462 billion. And that's for the $1400 to go to every man, woman, and child in the US. Must be a lot of unemployment dough going out to get the bill up to almost 2 trillion.

Oh. Never mind. I just read they are sending the extra money to me. Well, at last we have good government. Is this a great country or what?

davebarnes2
davebarnes2

It is just so refreshing to listen to a cogent articulate speech.
Whether you agree with Socialist Joe or Fascist (Fat) Donnie, there is a remarkable difference in how they speak to the country.

Realist
Realist

I just watched the speech. The most refreshing thing was that he didn’t spend his 25 minutes telling everyone how great he was. The second thing I liked was that he sounded sincere and showed empathy for his fellow Americans. I also liked that he didn’t say Red state bad; Blue State good. He didn’t call for his supporters to liberate Texas. What a difference!

Greggg
Greggg

The direct payments and aid to states/localities are temporary (until the next round). The $15.00 minimum wage and all the bennies for paid sick leave/family members ect. are permanent. Just more reasons not to hire any new employees.

Bohm-Bawerk
Bohm-Bawerk

$14,285 per person will be now how much stimulus we've gotten in the US. A family of 4, $57,142. How many Americans will actually see that?

Mish
Mish

Editor

The MMT answer, not that it makes any sense: Taxes are used to control employment (not inflation)

I found it.

Precise Sentence: "The purpose of Taxes is to create unemployment"

Mish
Mish

Editor

"I listened to a podcast interview of Stephanie Kelton where I thought I heard her say taxes were required to keep inflation in check. Maybe I misheard."

Possible Kelton said that. Indeed I can find where Mossler discussed that as well. But the video I posted says it all.

Mosler thinks there are other ways to control inflation.

tedr
tedr

Factor increased use of automation, robots, etc and the future of the minimum wage job isn't looking to promising right now. Or those that need these kind of jobs. Socialists are idiots.

Casual_Observer
Casual_Observer

The economy is between a rock and a hard place until we get herd immunity. I'm still optimistic we get back to normal by summer. Biden should embrace the middle and seize the opportunity provided by Republicants who love to spend more than Democrats. Cut defense spending by 50% and then go to work on the real economy.

Jmurr
Jmurr

As a childless adult, the child tax credit is very unfair. Since I don’t have children, my issue will never go to k-12 school or college (I pay property taxes for other people’s kids), will never be on welfare and will never spend a day in prison. Also, my generational carbon footprint is much lower than everyone with kids. How is that fair?

FromBrussels
FromBrussels

One hell of great way to ingratiate himself with the 'deplorables', I d say.....And as long as the $ Unlimited remains fit enough to create fairytales ....Like I said, GREAT !

Bungalow Bill
Bungalow Bill

And suddenly the Trump cult takes what Trump did before and applies the "socialist" label to it come next week when Biden starts governing like Trump with massive stimulus and redistribution of wealth. Funny how that works!

Get the printing presses ready at the Fed!

FromBrussels
FromBrussels

Just wondering : Do the Gates, Bill, Linda, their kids and other priveleged mil- and billionaires get 1400$ each, too ?

Mandelabra
Mandelabra

Yes, yes, money for nothing. I, personally, am waiting for the "chicks for free" part.

TheWindowCleaner
TheWindowCleaner

Direct Monetary Distributism has been let out of the austerity box and will never go back in. ...because it is the name of the new monetary paradigm that has been waiting to happen for the over 3500 years that the old monopoly paradigm of Debt Only, alternately exercised by the Palace or the financial elite, has been used to dominated every other actually legitimate economic business model and 95% of the populace.

And a 50% Discount/Rebate price and monetary policy at the point of retail sale is the means the implementing that paradigm change. Too simple for the intellectual vanities of economists and economic pundits....too beneficial and world changing not to be a paradigm change.


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