Find Out Where $1.92 Trillion is Heading…
It’s a lot of money. Indeed, it’s more than twice as large as President Obama’s $800 billion stimulus plan following the aftermath of the 2008 financial crisis. Meanwhile, by the time the stimulus is approved and disseminated into our economy, there’s a good chance we’ll no longer need it! By then, the economy will have already reopened and begun to improve.
Unemployment data is already on an upswing and with the increased distribution of the vaccine this new plan really is “money for nothin’, checks for free” as the song goes (and as my friend, economist and investor Neil Grossman recently wrote in his opinion piece entitled exactly that.)
Here’s a break down of the proposed spending. Read it and weep.
$422.3 Billion in Direct Payments
The Biden Administration intend to send $1400 checks to every individual tax filer, as well as $1400 for every dependent. This means a family of five could potentially receive $7,000 in the mail. Keep in mind, the payments phase out at $75,000 in income.
$350 Billion in State & Local Aid
This money is designed to assist states with their distribution of the coronavirus vaccine, as well as other state programs.
$245.8 Billion in Unemployment Benefits
These $400 a week checks from the federal government are quite sizable. Especially considering that the Obama administration only offered $25 per week.
$128.6 Billion to Reopen Public Schools
This money is said to be designated for the reopening of public schools. However, critics point to the plan to use only $6 billion in 2021 with the remaining $122.6 billion being spaced out over the next 7 years.
$109.2 Billion for Child Tax-Credit Expansion
The current $2k tax credit will grow to $3k ($3600 for children under the age of 6.)
$81.5 Billion for Pension Benefit Guarantee Program
This money is earmarked to help pay benefits for underfunded pension programs.
$48 Billion for Coronavirus Testing
$47 Billion to FEMA
$45.4 Billion for Increased Federal Minimum Wage
Democrats are proposing to increase the federal minimum wage from its current $7.25 per hour to $15 per hour by 2025.
$27.9 Billion in Aid For Transit
This money would go to improving transit programs across the country. For example, there is a proposed $8.8 billion that is carved out for “New York Area Transit” most of which is expected to aid the city’s cash-strapped Metropolitan Transit Authority.