Bidenomics Begins with $1.9 Trillion Spending Package

The comments below are an edited and abridged synopsis of an article by Andrew Moran

President-elect Joe Biden has released his plans for an emergency relief package; the proposal, called the American Rescue Plan, has a price tag of $1.9 trillion. It includes direct income support payments of $1,400, which raises the stimulus checks to $2,000. His plan also boosts the minimum wage to $15 per hour, increases the per-week jobless benefit to $400 until September 30, and extends moratoriums on evictions and foreclosures. Tens of billions of dollars will be earmarked for state and local governments, education, Covid-19 testing and vaccinations.

Bidenomics Begins with $1.9 Trillion Spending Package | BullionBuzz | Nick's Top Six
stimulus package word abstract in vintage letterpress wood type against textured handmade paper, relief bill during covid-19 coronavirus pandemic

Biden confirmed that his second major spending initiative will be released in February and will target his long-term goals, like combating climate change, advancing racial equity and supporting $10,000 in student loan forgiveness. Where is the money coming from? Money printing, capital markets and bond issuance. We could be witnessing the birth of what will ultimately be termed Bidenomics.

What are the core principles of Bidenomics? It seems that not even Joe knows, but the incoming president’s economic agenda will consist of spending, spending and more spending. From canceling student debt to greater Covid-19 stimulus and relief packages, the next two to four years could be challenging for Uncle Sam’s pockets. At least Biden has a diverse cabinet that represents the US population. That will make up for the job crisis and soaring price inflation, right?

Up for discussion: Inflation nation; is Bidenomics the cure for a jobs recession; and it’s inflation and jobs, stupid!

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