New economic stimulus package planned: Biden wants $ 1.9 trillion against corona crisis

Friday 15th January 2021

New stimulus package in planning
Biden wants $ 1.9 trillion against corona crisis

Shortly before taking office as US President, Joe Biden reveals his plans to counter the economic consequences of the Corona crisis. The Democrat is planning a new aid package worth billions. On Wall Street, the news is likely to cause joy.

The designated US President Joe Biden wants to put together a new corona aid package of 1.9 trillion dollars and thus get the world's largest economy going again. This includes further direct aid to US citizens of $ 1,400 each, as Biden employees said at a conference call with journalists.

"During this pandemic, millions of Americans through no fault of their own have lost the dignity and respect that come with a job and a paycheck," Biden said in his address to the nation on Thursday evening (local time). "The health of our nation is at stake. We must act and we must act now."

The additional unemployment insurance is to be increased from the current $ 300 to $ 400 per week and on top of that extended until September. A total of around one trillion dollars in direct aid is earmarked for private households. Another 415 billion dollars are to be mobilized for the fight against the virus and for the vaccination campaign. $ 440 billion is set to flow to smaller businesses and communities that are particularly hard hit by the pandemic.

"We are in a very precarious moment for our economy," said one of Biden's employees. The plan therefore provides for foreclosures and evictions to be suspended until September. Funds for rent and supply assistance are also to be provided. The President-elect also wants to urge Congress to raise the minimum wage to $ 15 an hour.

Corona crisis destroyed 22 million jobs

The plans were well received on the financial markets. The futures for the US stock index opened higher after details of Biden's plan were revealed. That suggests Wall Street will open on Friday with gains. "That is a lot of money, but it is within the scope of what was expected," said the president of the financial services company Bronson Meadows Capital Management, Oliver Pursche, of the trillion aid. "The stimulus will primarily benefit low-income consumers. They will buy from smaller businesses."

The situation on the labor market has recently deteriorated again. A total of 965,000 Americans applied for state support last week, the Department of Labor announced. In the seven days before it was only 784,000. In the Corona crisis, more than 22 million jobs were lost in the USA, of which only a good twelve million have been won back so far. The virus has so far killed more than 385,000 people in the United States.