If President Joe Biden’s COVID rescue package was signed into law, the economy would bounce back to pre-pandemic levels by summer, according to a new analysis from S&P Global.
“We find that if the $1.9 trillion package were put into law, the U.S. economy would reach pre-crisis levels in the second quarter of 2021, with a stronger demand-driven path of growth through 2023,” the S&P reported, according to The Hill.
From higher GDP growth to lower unemployment, the analysis indicates that Biden’s relief plan is exactly what the economy needs at this moment of unprecedented crisis.
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Biden’s proposal would also set the economy on course to exceed its pre-pandemic growth path until the end of 2022, when it would start to slow, S&P said.
On the jobs front, S&P said the injection of government funds would likely push unemployment down below 4 percent by mid-2023, a year earlier than its current forecast. The nationwide unemployment rate stood at 6.7 percent in December, the most recent figures available from the Labor Department.
The $618 billion counterproposal put forward by a group of 10 GOP senators, on the other hand, would only temporarily boost the economy, before it started to lag again.
Republicans are standing in the way of relief
Despite the fact that millions of Americans are suffering through this public health and economic crisis, Republicans continue to stand in the way of real relief that would save lives and boost the economy.
It’s why the White House and Democrats in Congress are increasingly likely to go it alone if that’s what it takes to deliver for the American people. They are showing no signs of even entertaining the idea of the GOP’s watered down non-relief bill.
Republicans want to strangle the economy so they have something to run on in 2022, while Joe Biden and the Democrats are trying to deliver meaningful relief to the American people.
Sean Colarossi currently resides in Cleveland, Ohio. He earned his Bachelor of Arts degree in Journalism from the University of Massachusetts Amherst and was an organizing fellow for both of President Obama’s presidential campaigns. He also worked with Planned Parenthood as an Affordable Care Act Outreach Organizer in 2014, helping northeast Ohio residents obtain health insurance coverage.