Wednesday, July 28, 2021

The pandemic stimulus in the US was anticipated. That could spell a bumpy year.

- Advertisement -

Must read

The $ 1.9 trillion American Rescue Plan enacted in March, as well as a $ 900 billion pandemic relief package approved in December, have a large initial burden. They were created to get money quickly.

But one consequence of that strategy is that fiscal policy in the coming quarters will detract from economic growth.

Financial experts mostly project that the economy, with strong labor market momentum and huge amounts of savings stifled by households, will be strong enough to keep growing despite the disappearance of the fiscal impulse. To avoid an economic downturn, there must be a large pass-through of demand driven by the government to the private sector.

There is no modern precedent for such large changes in the sums that the government is injecting into the economy. And there is a risk, recently recognized by a senior Federal Reserve official, that if pandemic-era savings are disproportionately held by the wealthy, they will keep that cash instead of spending it.

Most Americans eligible for stimulus checks totaling $ 2,000 per person have already received them. Treasury Department said this month that $ 395 billion of that cash is now being sent.

While unemployment insurance payments remain high, that spending is also shrinking as people return to work, and supplements to those payments are scheduled to expire in September. Much of the rest of the spending was short-term and focused on things like launching vaccines; or it will be spent very gradually, as in an expanded child tax credit and grants to state and local governments.

Do Not Miss

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Phishers who speak to everyone, from sales staff to C-suite executives

0
All Transform 2021 sessions are available on demand now. Watch now. The average CEO receives 57 phishing emails a year, but other executives and...

Michael Phelps passionately defends Simone Biles’ mental health: ‘It’s okay not...

0
NBC made audiences wait 14 hours to hear 28-time Olympic medalist Michael Phelps speak about Simone Biles after she dropped out of the women's...

Infrastructure talks put Biden’s entire agenda at risk

0
WASHINGTON (AP) - President Joe Biden's latest leap in the Senate's upward and downward efforts to achieve a bipartisan $ 1 trillion infrastructure deal...

Concerns as India builds rail network in remote state near China...

0
Calcutta, India India's ambitious railway project to connect a small northeastern Indian state along its border with China with the rest of the country...

Katie Ledecky raises the bar with first gold of grueling 2021...

0
Katie Ledecky watched the scoreboard at the Tokyo Aquatic Center on Wednesday morning as she waited for the rest of the field to hit...

Blossom Capital attracts Alex Lim from Silicon Valley to join European...

0
Alex Lim, a Bay Area-based British-born VC who invested in Hopin, UiPath, Discord and many other unicorns has decided to leave Sand Hill Road...

Myanmar’s junta seeks international cooperation over the Covid-19 crisis

0
Myanmar's military ruler is seeking greater cooperation with the international community to contain the coronavirus, state media reported Wednesday, as the Southeast Asian country...

Ivorian fintech Julaya raises $ 2 million to digitize business payments...

0
exist more than 1 billion mobile money accounts worldwide. Africa leads the way in value and volume of transactions thanks to M-Pesa, largely...

“He knows I’m going for him”

0
According to Colby Covington, a fight against Dustin Poirier is the only fight that would make sense to him after his rematch against Kamaru...

Rioters’ racism takes center stage in January 6 hearing

0
It had only been hinted at in previous public examinations of the Jan.6 Capitol uprising: Scores of rioters attacked police officers not just with...

Trea Turner removed from Nats game after positive COVID test

0
Trea Turner was abruptly pulled from the Washington Nationals game Tuesday night, prompting concern and questions from fans and members of the media. ...

Tropical Storm Pours Rain in Northern Japan, Prevents the Olympics

0
RIFU, Japan (AP) - A tropical storm dumped rain in parts of northern Japan on Wednesday after moving away from the Tokyo region and...

London Court Reopens US $ 7 Billion Brazilian Dam Collapse Lawsuit...

0
The London appeals court took a U-turn on Tuesday by agreeing to reopen a $ 7 billion lawsuit brought by...

Passports, please: Afghans are lining up to escape.

0
KABUL: Like thousands of his compatriots, Abdel Khalid Nabyar waited outside Afghanistan's main passport office to request the valuable travel document that would allow...

US tells people vaccinated in high-risk areas for Covid to re-mask

0
WASHINGTON: People vaccinated against Covid-19 in high-risk parts of the United States should go back to wearing masks indoors, the top health authority said...
- Advertisement -

Don't Miss