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Biden to unveil trillions in pandemic economic relief spending next week

EconomyJan 08, 2021 06:15PM ET
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© Reuters. U.S. President-elect Joe Biden announces economics and jobs team nominees at transition headquarters in Wilmington, Delaware

By Trevor Hunnicutt

WILMINGTON, Del. (Reuters) - U.S. President-elect Joe Biden said Americans need more economic relief from the coronavirus pandemic now and that he will deliver a plan costing "trillions" of dollars next week.

Biden, introducing several members of his economic team, spoke on Friday after data showed the U.S. economy lost jobs for the first time in eight months in December as a resurgent COVID-19 pandemic shuttered restaurants and other businesses.

He said the proposal includes relief for state and local governments grappling with the pandemic, as well as new support for people who lost their jobs or cannot afford rent.

Biden also called for raising the minimum wage to $15, a campaign promise, and for sending out $2,000 in direct cash payments. Democrats sought those cash payouts in the last relief bill, passed in December, but only were able to get Republicans to agree to $600.

"We need more direct relief flowing to families, small businesses, including finishing the job of getting people that $2,000 relief direct payment. $600 is simply not enough," he said.

Biden said he would unveil the plan on Thursday.

The Democrat, who takes office on Jan. 20, emerged emboldened from a pair of Senate elections this week in Georgia that handed Democrats a majority in that chamber to complement control of the House of Representatives. The majorities could allow Biden to pass larger spending bills.

Biden's initial plan was for a bill under $1 trillion but he said on Friday that "economic research confirms that with conditions like the crisis today, especially with such low interest rates, taking immediate action - even with deficit financing - is going to help the economy."

Speaking to reporters as he announced his nominees to head the Commerce and Labor departments, the president-elect said action was needed to help Americans get to the other side of the health and economic crisis, and to "avoid a broader economic cost that exists out there, that will happen due to long term unemployment, hunger, homelessness and business failings."

Markets have reacted quickly to expectations that government spending will rise since Democrats won the Georgia elections, with stock indexes rising and the interest investors demand on 10-year U.S. Treasury bonds climbing to their highest levels since March.

Yet Republicans and even some Democrats may be resistant to greater deficit-fueled spending, with Sen. Joe Manchin, a Democrat from West Virginia, among those who initially greeted the idea skeptically.

Biden's transition team also said on Friday that they are looking into other economic relief actions they can take unilaterally, including extending a pause on repayments of federal student loans.

Biden to unveil trillions in pandemic economic relief spending next week
 

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Comments (12)
Crypto Hodler
CryptoHodler Jan 10, 2021 5:18PM ET
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10 trillion should be okay
David David
David9 Jan 09, 2021 11:00AM ET
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please send me $2K... my rent is due soon...
steve not
steve not Jan 09, 2021 10:27AM ET
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Republicans will take any money printed from thin air when the dollar implodes and assets become unsustainable for the poor because government ability to help any more is gone . its game over.
Sam Donald
Sam Donald Jan 08, 2021 11:16PM ET
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Trump supporters don't want government handout hahahaha. I better not see any Trump accepting money
Gary SKY saw
Gary SKY saw Jan 08, 2021 11:07PM ET
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Hip hip hooray... 2k.. Free money... Next 2 months handout again.. I love America.. 🇺🇸
Sattar Langary
Sattar Langary Jan 08, 2021 10:14PM ET
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Help landlords too. Why would they suffer? Tenants take advantage of the ruling and avoid paying rent to landlords.
Kelly Mayer
Kelly Mayer Jan 08, 2021 4:11PM ET
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He will shut the economy so fast you won't even know what happened. Mandatory lockdowns and masks for everyone. Obey will be the norm. Covid is the excuse.
Jaundiced Eye
Jaundiced Eye Jan 08, 2021 3:52PM ET
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I thought TRUMP was the "King of Debt." My mistake.
Steven Kilgore
Steven Kilgore Jan 08, 2021 3:44PM ET
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Except 1 Democrat already said no, so that’s out the window... Anything else Crepy Joe?
Sattar Langary
Sattar Langary Jan 08, 2021 2:41PM ET
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Yes! Thanks President elect Biden! 2000 would help American families during these cold and dark days of winter! first impression!
Djodmy Champagne
Djodmy Champagne Jan 08, 2021 2:36PM ET
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ANIMESH GAUTAM
ANIMESH GAUTAM Jan 08, 2021 2:23PM ET
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who will pay for debt ? 1200 + 600+ 2000 ? unemployment benefits extra. ? looks us will bankrupt itself in coming years.
Nghia Vu
Nghia Vu Jan 08, 2021 2:23PM ET
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raise corporate tax from 21% so executive can gift themselve with free stock option, closed all the tax loop hole allow big corporation paid 750$ while rack in billions.
Nata Hook
Nata Hook Jan 08, 2021 2:23PM ET
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Who us paying for all the business bailouts?
Steven Kilgore
Steven Kilgore Jan 08, 2021 2:23PM ET
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Nghia Vu You really don’t understand that businesses are global these days. They don’t need to be headquarted in thr US or any 1st world country for that matter. As Covid has proven, most companies can function from just anout anywere as long as they have internet access. Why do you think so many companies are fleeing to TX and FL, they are tired of the taxes. Next stop for the few remaining is Ireland or some other country with little or no taxes. What the left never seems to understand that 21% of aomthing is a whole lot better than 100% of nothing.
 
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