The measures should boost US GDP this year by 3-7 percentage points, said Gregory Daco, chief economist at Oxford Economics. “Households will be the engines of reactivation,” and he noted that low-income families will benefit from “$ 900 billion budget transfers,” including direct checks, additional unemployment benefits, and tax credits.
High-income families should, on their side, spend a part of the savings accumulated for 11 months. “It is the package we need to relaunch our economy and return it to the previous level,” estimated Treasury Secretary Janet Yellen.
The Senate approved the Republican no-vote stimulus plan on Saturday, and the Democratic majority in the House of Representatives should quickly pass the bill so that Biden can enact it before March 14, the date on which unemployment benefits end.
Checks for $ 1,400 per adult per child should be sent to millions of Americans based on their income. “It’s an important set of measures that will give hundreds of millions of Americans the help they need,” Yellen said.
With school funding and the prospect of child care tax credits, many people will be able to return to work.
According to the White House, this law will create some seven million jobs this year and reduce health costs, saving lives thanks to resources to achieve widespread vaccination. It should also cut poverty among children in half.
The states and local entities cut 1.4 million jobs due to the fall in their income and the increase in their expenses, Yellen said. This plan should allow “police and firefighters to keep their jobs.” “If all goes well, our economy will recover its previous full employment next year,” she estimated.
“A portion of the aid should have an impact on economic data starting in April,” said Michael Pugliese, an economist at Wells Fargo.
That, he argued, could translate into a jump in consumption, particularly in retail stores starting in April and May, even if some families decide to save some of the money they will receive. “The plan is very, very massive,” said economist Joel Naroff, for whom the government’s objective is clear: to bring growth in a few months from a moderate pace to a rapid pace