Biden unveils $1.9 trillion economic plan as US recovery buckles

WASHINGTON, January 15 ------ President-elect Joe Biden will propose injecting $1.9 trillion into the US economy when he takes office next week, as evidence mounts that the recovery from the sharp downturn caused by Covid-19 is flagging. With his fellow Democrats narrowly controlling both houses of Congress, Biden has a shot at passing what would be the third massive pandemic aid package. Dubbed the American Rescue Plan, the proposal includes a host of measures aimed at revitalizing the world’s largest economy, senior officials in his incoming administration said on Thursday.

Biden proposes raising the federal minimum wage to $15 an hour, aiding struggling state and local governments, safely reopening schools, rolling out a massive Covid-19 vaccination campaign and raising the size of stimulus checks Congress approved last month. “We are in a race against time, and absent additional government assistance, the economic and public health crises could worsen in the months ahead; schools will not be able to safely reopen; and vaccinations will remain far too slow,” a campaign document warned.

Top Senate Democrat Chuck Schumer and House Speaker Nancy Pelosi embraced Biden’s plan, vowing to put it before lawmakers. “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,” they said in a joint statement. But this is just the first step, and the officials said Biden intends to present a second “recovery” plan to lawmakers soon after his inauguration on Wednesday to spur hiring and fight climate change.

The government on Thursday reported a spike in new jobless claim filings in the first week of 2021 to nearly a million, its highest level since August, while official data last week showed the economy shed jobs in December.

Source: inquirer.net