Joe Biden's 100-day recovery
plan
The new US President's ambitious rescue plan could become the bailout that
Americans so desperately need
By Knut Dethlefsen | 20.01.2021
ReutersUS
President-elect Joe Biden has outlined his coronavirus vaccination plan
Read this article
in German.
Joe Biden has big
ambitions. Already before his inauguration, the US president-elect has
presented a high-profile national rescue plan to build a bridge to the other
side of the crisis. The number of Americans struggling with the Covid-19 health
crisis and its economic and social consequences makes this ever more urgent.
They are desperate for relief.
Of all the highly
developed industrialised nations, the US has been hit the hardest by the global
Covid-19 pandemic. Nearly 400,000 Americans have succumbed to the disease and
almost 24 million have contracted the virus. High unemployment and many
business failures weigh heavily on the American middle class. Compared to
pre-pandemic times, ten million more people are currently out of work. Last
week alone, more than one million people registered as unemployed.
Congress has so far
passed packages to fight the consequences of the pandemic totalling more than
four trillion USD. But these have so far failed to really revive the economy
and the labour market. That’s because more than half of the aid went to
companies in the form of tax breaks and wage subsidies, many of which did not
have to prove any negative impact from the pandemic. Just under USD 860bn, a
good fifth, went to workers and families. Only about 15 per cent was spent on
fighting the pandemic itself.
A roadmap for the first
100 days
During this pandemic, it
has become more than obvious that American exceptionalism consists primarily of
being completely overwhelmed by the crisis. There has been no political
leadership at the national level during Donald Trump's presidency, nor any sense
of community in dealing with the crisis. Instead, the country has been dealing
with itself. US society finds itself in uncertain times. Citizens fear for
their health and their material existence. The Covid-19 crisis has shone a
light on the already existing social and economic disparities, societal
injustice and the inhumane distortions of the health care system.
With the National
Recovery Plan, Biden now wants to turn the tide and address both the health and
economic crises. It’s clear that programmes to expand and better coordinate
nationwide measures in the fight against the pandemic and its consequences are
urgently needed. The US is experiencing a difficult winter. One in three adults
nationwide is struggling to pay regular household expenses.
Biden's rescue plan is
intended as an immediate measure to be followed by further, longer-term
legislative initiatives.
The failure of the
outgoing administration weighs on the country's future. Despite the crisis, the
Biden-Harris administration has a rare opportunity not only to alleviate
hardship in the short term, but also to set a crucial course and help shape the
structural changes in the country that the corona crisis has highlighted and
accelerated. This includes, first and foremost, restoring confidence in
government action and demanding better life risk protection for all sections of
society.
Voters expect Joe Biden
and Kamala Harris to fight the pandemic more effectively, revive the economy,
improve infrastructure and expand health care. Biden and Harris know they will
be judged by their success in these areas. That’s why they have laid out a
roadmap for the first weeks after taking office.
A bailout plan for the
people?
The USD 1.9 trillion
‘Build Back Better’ bailout plan that Biden's Democrats plan to introduce to
Congress as soon as they take office includes direct cash payments to the
majority of workers, expanded unemployment insurance, rent subsidies, food
assistance and government aid to small businesses. The package also includes a
doubling of the minimum wage to 15 USD. If the measures are successfully
implemented, twelve million Americans could be lifted out of poverty and child
poverty could be halved.
Biden's rescue plan is
intended as an immediate measure to be followed by further, longer-term
legislative initiatives. USD 400bn is to be used to fight the corona pandemic
with a national vaccination programme and the expansion of free testing and
tracking. This should also make it possible to reopen public schools. More than
one trillion USD have been announced as direct payments to households or
families. This includes an increased one-time payment of 2,000 USD for all
households below a certain income threshold as well as an increase in
unemployment benefits to 400 USD per week with a possible eligibility period
until September this year.
These concrete transfers
have a lot of support among the US population. Even Donald Trump supported the
increased one-time payments in December. Another 440bn USD are planned as
grants to states, municipalities and small businesses. With the overall
package, a way out of the economic crisis is finally in sight. And faster than
was the case after the financial crisis of 2008/2009.
The Biden-Harris
vaccination plan
The provision of
vaccines, which will be used on a large scale in 2021, fuels hope that the
health and economic catastrophe can be stopped. By mid-January, only just over
eleven million Americans had been vaccinated (about 3.5 per cent of the total
population), although 29 million vaccine doses were already available.
President Biden has promised that 100 million vaccine doses will have been
administered by the end of his first 100 days in office. He said his
administration will do everything in its power to achieve these goals.
Public opinion is on
Biden's side, if perhaps only for a short time.
Joe Biden and his team
intend to mobilise the power, resources and personnel of the federal government
and deploy them with full force to bring the pandemic under control.
Vaccination centres and testing stations will be set up across the country, the
National Guard will be deployed and well over 100,000 new health managers will
be tasked with tracking infection routes and effective quarantine. The
responsible federal authorities will drive vaccine production and distribution
with special powers. In all of this, the cooperation of the various government
agencies needs to be coordinated and improved.
Public opinion is on
Biden's side, if perhaps only for a short time. According to a recent PEW
survey, 58 per cent of all Americans approve of Biden and his plans. 57 per
cent approve of his government formation and his appointments to high
government offices. And 46 per cent of those surveyed believe that Joe Biden
will improve the work of the federal government. If he succeeds with his
programme, he should continue to gain in the polls. But he doesn’t have time
lose.
The political power
balance
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