There are no new stimulus checks yet. Moreover, there are no clear signs if Democrats and Republicans will come together to pass another relief package before Labor Day next month. Joe Biden, however, is already thinking of announcing a coronavirus economic stimulus if he is elected as the president in November.
Coronavirus economic stimulus: what are Biden's plans?
If Biden wins the election in November, he plans to introduce a coronavirus economic stimulus to "jumpstart" a recovery. Biden’s proposed plan includes sending another round of stimulus checks, as well as many other provisions.
What can past market crashes teach us about the current one?
Biden’s proposed plan would reportedly include paid sick leave for workers, unemployment benefits, tax credit, aid for states and local governments and more, according to a report from Business Insider. Further, the plan would give an annual tax credit of $8,000 to the parents of young children, as well as cover the healthcare costs for the newly-unemployed.
"Nearly one in six small businesses have closed this year," Biden said last week. “And yet the wealthiest one percent will get tens of billions of dollars in new tax breaks."
Biden reportedly proposes around nearly $4 trillion in tax increases in a phased manner. As per BI, the majority of the new taxes would be levied on the top 1% of households. Biden also proposes increasing the funding for coronavirus testing and tracing in an effort to slow down the infectious disease and eventually end it.
Focus on boosting local manufacturing
Another important part of Biden’s plan is a $700 billion "Buy American" program with the objective to boost the "sputtering economy." The plan focuses on revising domestic manufacturing.
This plan has two parts. One $400 billion component would focus on increasing the demand for US-made goods and services. The second component of $300 billion would make an investment in research and technology in the country, including on clean energy research.
As per the claims by the Biden campaign, this plan would reinstate five million jobs lost at the time of the pandemic, as well as create five million new jobs.
Even though Biden talked about his coronavirus economic stimulus, he gave no hint on the total cost of the plan and the amount of stimulus checks that he would send.
Both Democrats and Republicans agree on sending $1,200 in stimulus checks, but there is no consensus on the overall relief package yet. Moreover, there are differences on the size of the package as well. Republicans are in favor of a package costing $1 trillion or less, while Democrats want a package of at least $2 trillion.
Biden noted that the U.S. is engulfed by numerous crises. He called the combination of the coronavirus pandemic, the financial crisis, racial justice movement and climate change a “perfect storm.”