https://issuesinsights.com/2021/01/19/dont-call-bidens-plan-stimulus-its-just-another-keynesian-fantasy/
Joe Biden’s promised stimulus is meant to boost an economy devastated by the Democrats’ national shutdown by handing out more checks and imposing a $15 national minimum wage. Sorry, it won’t work.
“We must act now, and we must act decisively,” Biden said.
Sounds good, but do we really? What he and Congress have proposed is an incoherent mess that will do the precise opposite of what he says it will. Even worse, it’s premised on the long-discredited idea that the government can stimulate the economy by spending more.
From false premises come bad policies that will hurt many low-income people and possibly end the Trump recovery now under way. And, make no mistake, Biden’s $1.9 trillion stimulus plan unveiled late last week contained a panoply of bad policies.
In a recent piece, the Foundation for Economic Education listed the bill’s main provisions:
An additional $1,400 in “stimulus” checks sent to most Americans, raising the recently passed $600 payouts to $2,000.
Renewal and increase of the expanded unemployment benefits that extend payouts to many new classes of workers through September 2021. Biden’s proposal would add $400 a week in federal payouts on top of existing state-level benefits.
Expansion of the child tax credit and the Earned Income Tax Credit.
An increase in food stamp benefits.
A nationwide $15 minimum wage.
Extension of the federal government’s eviction moratorium.
$350 billion for local, state, and tribal governments.
$160 billion for vaccine distribution and other COVID-19 health measures.
Paid leave for millions of workers, much of which would be funded by taxpayers.
“It is $1.9 trillion, and it’s basically the Bernie Sanders wish list of spending on massive blue state bailouts,” including “$100 billion for schools, even though schools have been shut down for the last year,” said former Trump economic adviser Steve Moore.