Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Biden unveils plan to pump $1.9 trillion into pandemic-hit economy

Economy Jan 14, 2021 09:37PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: U.S. President-elect Joe Biden announces economics and jobs team nominees at transition headquarters in Wilmington, Delaware 2/2

By Jeff Mason and Jarrett Renshaw

WILMINGTON, Del. (Reuters) - President-elect Joe Biden outlined a $1.9 trillion stimulus package proposal on Thursday, saying bold investment was needed to jump-start the economy and accelerate the distribution of vaccines to bring the coronavirus under control.

Biden campaigned last year on a promise to take the pandemic more seriously than President Donald Trump, and the package aims to put that pledge into action with an influx of resources for the COVID-19 response and economic recovery.

"A crisis of deep human suffering is in plain sight, and there's no time to waste," Biden said in prime-time remarks from Delaware. "We have to act and we have to act now."

The aid package includes $415 billion to bolster the response to the virus and the rollout of COVID-19 vaccines, some $1 trillion in direct relief to households, and roughly $440 billion for small businesses and communities particularly hard hit by the pandemic.

Stimulus payment checks would be issued for $1,400 - on top of the $600 checks delivered by the last congressional stimulus legislation. Supplemental unemployment insurance would also increase to $400 a week from $300 a week now and would be extended to September.

Biden's plan is meant to kick off his time in office with a large bill that sets his short-term agenda into motion quickly: helping the economy and getting a handle on a virus that has killed more than 385,000 people in the United States as of Thursday.

It also provides a sharp contrast with Trump, who spent the last months of his administration seeking to undermine Biden's election victory rather than focusing on additional coronavirus relief. Trump, who leaves office on Wednesday, did support $2,000 payments to Americans, however.

Many Republicans in Congress balked at the price tag for such payments.

Biden will face similar hurdles with his proposals, which come on the heels of a $900 billion aid package Congress passed in December.

But he will be helped by the fact that his fellow Democrats will control both the House and the Senate. Chuck Schumer, who is about to lead a narrow Democratic majority in the U.S. Senate, and House Speaker Nancy Pelosi said on Thursday that Biden's package was "the right approach" and pledged to begin working on legislation.

The incoming president will seek to pass the legislation even as his predecessor faces an impeachment trial.

The Democratic-led House of Representatives voted to impeach Trump on Wednesday, making him the first president in U.S. history to be impeached twice. Ten of his fellow Republicans joined Democrats to charge him with inciting an insurrection in last week's deadly rampage at the Capitol.

The impeachment proceedings threaten to hang over the beginning of Biden's term, and Biden has encouraged lawmakers to handle the trial while also moving forward with his agenda.

PRECARIOUS MOMENT

Transition officials said Biden's plan will be a rescue package that will be followed up with another recovery package in the coming weeks.

The plan would extend moratoriums on foreclosures and evictions until September and include funding for rental and utility assistance.

The president-elect also called on Congress to increase the minimum wage to $15 an hour, and the package will include assistance to fight hunger.

"I know what I just described does not come cheaply, but failure to do so will cost us dearly," Biden said, adding that economists, financial institutions and Wall Street banks supported the need for stimulus.

"If we invest now – boldly, smartly, with unwavering focus on American workers and families – we will strengthen our economy, reduce inequality and put our nation's long-term finances on the most sustainable course."

The coronavirus relief-related funds will go toward a national vaccine program, testing, investments for workers to do vaccine outreach and contact tracing, and money for states.

"The vaccines offer so much hope ... but the vaccine rollout in the United States has been a dismal failure thus far," Biden said, adding that on Friday he would set out his plan to vaccinate 100 million Americans in 100 days after taking office.

"This will be one of the most challenging operations efforts we've ever undertaken as a nation. We'll have to move heaven and earth to get more people vaccinated."

Pandemic-related shutdowns and restrictions have cost millions of U.S. jobs. The Biden plan - if enacted - would buy more time for the economy to bridge the period until the distribution of vaccines allows for a wider resumption of economic activity.

U.S. equity index futures were little changed after Biden's speech, details of which emerged during Thursday's trading session.

"It's one piece in the overall puzzle," said Jake Dollarhide, chief executive at Longbow Asset Management in Tulsa, Oklahoma. "It bridges the gap to getting restaurant workers, airline workers and other employees back to work."

Biden unveils plan to pump $1.9 trillion into pandemic-hit economy
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (40)
Lonnie Shelton
Lonnie Shelton Jan 15, 2021 8:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Well, my legitimate comment about the incoming administration from yesterday was removed.  Apparently the far left controls media on this site as well.  So long freedom of speech.
Patron Silver
Patron Silver Jan 14, 2021 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
finally a prez that actually wants to help ppl
neil rutan
neil rutan Jan 14, 2021 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you're joking right?
Abcdefg Abcdefg
Abcdefg Abcdefg Jan 14, 2021 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you think Joe is helping people. you must be ignorant to ignore what Trump has done for America. Joe hasnt done anything in 47 years he has been in office.
Patron Silver
Patron Silver Jan 14, 2021 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Abcdefg Abcdefg go back to ur basements trump sheep. I'll take Biden over chaos and vitriol anyday
Patron Silver
Patron Silver Jan 14, 2021 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
am I joking about ur prez that divided the country in so many ways. that didn't take responsibility for anything he said or did and was more interested in himself and his golf swing than its citizens. go get another prophet u sheep.
Edidiong Victor
Edidiong Victor Jan 14, 2021 10:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hey guys this money pumped in are we expecting inflation. or deflation of the us Economy...
Abcdefg Abcdefg
Abcdefg Abcdefg Jan 14, 2021 10:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
inflation long term
Casador Del Oso
Casador Del Oso Jan 14, 2021 10:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
stimulus is like giving oxygen to a patient on life support soon to flat line
Gershom Zvi
Gershom Zvi Jan 14, 2021 10:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Today biden’s stimulus and tyr market eas down ?! Why !?
Johnny Crash
Johnny Crash Jan 14, 2021 10:09PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden is a creep
Tenemos Avoir
Tenemos Avoir Jan 14, 2021 12:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The activities of our Machiavellian Princess Nancy will do little to restore confidence.
Clinton Powell
Clinton Powell Jan 14, 2021 12:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Like how thats out! ⭐️⭐️⭐️⭐️⭐️⭐️
Jim Courtney
Jim Courtney Jan 14, 2021 12:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Funny last time i checked Donald Trump doesn’t write law, that would be Pelosi and her gang who held up all to “GET TRUMP” American people be damned. But for. Phony news organization it was a great try.
Mark Henline
Mark Henline Jan 14, 2021 11:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the wonder exists if the actual.plan is state sucession.the fed givernment has been pushing that responsibility seed for a long time.
Mark Henline
Mark Henline Jan 14, 2021 11:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Does anyone remember 10 trillion ago when we didn't have the money to build a wall? for a measly 8 billion
perplexed76 .
perplexed76 . Jan 14, 2021 11:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i either don't have money for idioitic ideas. But i have when it's about my health etc.
Mark Henline
Mark Henline Jan 14, 2021 11:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
perplexed76 . its always only about money and who gets it and when
Mark Henline
Mark Henline Jan 14, 2021 11:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
border security has always been most important
Nick Smith
Nick Smith Jan 14, 2021 11:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Most (all) people that i know don’t need that stimulus and buy luxury stuff with it.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email