New York (CNN Business) – The most costly allocation of Joe Biden’s $ 1.9 trillion economic recovery plan is his proposal to raise $ 1,400 additional to the majority of the stadiums. For many economists, this is the least effective way to help reactivate the economy.
The additional measure of support for generalization among Democrats and Republican Democrats, including President Donald Trump, points out the economic benefits of economic aid packages by covid-19 months ontvanger van US $ 600 per US $ 2,000.
“Six dollars simply are not enough if they choose to pay the debtor and make money in the month,” Biden said, revealing his plan for economic recovery. “Including those who have kept their jobs, these checks are really important.”
Estimate directed to the equivocal persons
The problem with direct payments, especially economists and other critics of the plan, is that part of this estimate is destined for people who have not seen economic precedents due to the covid-19 pandemic. This means that our additional dollars can not do much to stimulate economic activity.
Redeem checks of US $ 1,400 per month and the mayor of the person costing $ 75,000. Contributors who present joint declarations and make less than US $ 150,000 also qualify. Those who can more than qualify for minor fees, with a limit of US $ 87,000 for individual contributors are eligible.
“This money is not well managed,” said Mark Zandi, chief economist at Moody’s Analytics.
Zandi says that the only economic argument in favor of checks is that it is a politically factual form of introducing much money effectively in the fast-paced economy.
“Import politics and speed are the most important things to do,” he said. “But I believe that it is the second or third major political issue. Certainly not the most effective way to help ».
Muchos no lo gastarán
The money will be saved by the contributors with difficulties. But one of the problematic mayors, according to the economists, is that many of those who receive the checks weigh the money in arrears or use it to pay deuds, nothing of which has much to do with general economic activity.
“The accepted theory of the behavior of hogar is that a single payment is made to estimate the additional guest”, said Joel Prakken, economist at EE.UU. by IHS Markit. “The people who host it will buy it that will probably not be repeated. Each time it is more difficult to argue that there will be an intermediate estimate for the economy ».
A large part of the challenge of maintaining the guest of the consumers during the pandemic is that many of the goods and services in which the people are eating in “normal” times are not available until the crisis.
«I’ve given that much of the money [en el gasto] “It’s not uncommon for people to have no quarrel, so that they can stay because they can not take a shower or go to a restaurant,” said Larry Summers, in a recent Bloomberg interview. Summers were one of the main economists in the first days of the Obama administration. “We do not necessarily believe that the priority should be to promote the guest of the consumer more than where we are now.”
Although Summers has been a partisan of the direct payments in the past, it is skeptical that the proposal is effective this time. “I would like to be sure to be enthusiastic about US $ 600 checks,” he said. “It is believed that the US $ 2,000 series is a serious error.”
Political failures
There is a possibility that Biden’s proposal for additional US $ 1,400 payments will not be approved.
The additional round of estimating the US $ 465,000 million cost, according to the Commission for a Federal Responsible Presbytery. It is also an amount of US $ 100,000 million, which is intended to represent the achievements of desempleo.
The majority of experts believe that the $ 1.9 trillion full package has the potential to convert into a currency and is likely to be reduced. In addition to supporting bipartisans in checks, there is also bipartisan opposition. Among the most critical Democrats is Senator Joe Manchin of Virginia Occidental.
“I want to help the people who need help. People who do not have the alcanza. The people who did not work, could not come together in the month, “Manchin told CNN in a recent interview. «Send check to people who basically have a check, and who is not a guest, who is standing in his account of horrors at the moment, so it is not us. Hemos hecho mucho de eso. It’s time to dump her and move on. “
Senator Mitch McConnell, who will be the leader of the minority in the new Senate controlled by the Democrats, said he also opts for another round of voting controls to support some members of his group.
“It is no secret that Republicans have a diversity of points of view on the ability to pay hundreds of thousands of millions of dollars in direct money, including to many seniors who have not suffered from ingress during the crisis,” he said. Recent statements in the Senate. “It is not clear that the main priority of the federal government should be to send miles of dollars to, for example, a couple without hijacking in six digits and having been telecommuting all year. Nuestro deber es ayudar a las persona que necesitan ayuda ».