The need for the largest stimulus package in modern history.
President Biden is proposing a $1.9 trillion pandemic rescue package in order to help rebuild the U.S.’s economy, ranging from the deployment of more vaccines to the reopening of schools and businesses. This package would also go towards increasing unemployment benefits and more checks being sent out to aid most Americans. Doing so would allow the U.S. to quickly bounce back out of the recession.
“Interest rates are at zero, inflation is low, unemployment is high. You don’t need a textbook to know this is when you push on the fiscal accelerator. Let’s go.” — Mark Zandi of Moody’s Analytics
However, this package comes with a high risk. While this package might accelerate the growth of our economy, it could lead to a long adjustment period with very slow growth afterwards. This could also lead to employers needing to increase wages to attract more workers, which, when combined with product shortages, can result in large price hikes.
While the short term benefits of this stimulus package are incredibly enticing, it carries a large risk that can lead to many issues in the future.