A trigger stimulus package was adopted in the United States this week. The figures are staggering: $ 1,900 billion or 500 1,500 billion. This is more than double the European plan for $ 750 billion, and six months after its launch, it is still not seen within member states.
Joe Biden wants to hit hard at this trigger plan, which he voted for a month after he came to the White House. It represents 15% of national wealth (hence GDP) and Americans will feel the effects first in the coming weeks.
9 1.9 trillion is going where
These billions of dollars will go directly into the pockets of Americans. If a person has less than 000 75,000 per year, they will receive a check for 4,400 per person, which makes it possible to consolidate the vast majority of U.S. citizens. The move is the most spectacular and apparently the most expensive of the recovery plans, helping to expand unemployment benefits until the end of September, reopen schools or strengthen the vaccination campaign.
Biden shows color: His goal is to get out of the recession as soon as possible. The epidemic has destroyed 10 million jobs in the United States. The new US president wants to do more than enough by paying massive sums of money into the economy. The Americans will spend this money on consumption, in the hope that it will restart the economic machine, a Keynesian policy called so-called demand.
What economists think
Often they say they will work. The OECD, which released its growth forecast for 2021 this week, has raised the United States by 5.6 percentage points this year. According to the international organization, it is not just Americans who are benefiting. We, too, according to the OECD: Europe, Japan, and China, should be thankful for this stimulus to the US economy, as we rush to sell our products to Americans, to get a point and a half more growth.
And on the risk side
The main danger – and here it is not only the United States – is the risk of the economy overheating: the more coal you have, the more it is carried away. The first effect, when supply exceeds demand, is inflation, inflation. Many economists in the United States have already warned of this problem, starting with Bill Clinton’s former Treasury Secretary, but Joe Biden’s team is reducing this risk at this time because there is a political urgency today to revive the country’s economy.