The announcement on Friday that 943,000 new jobs were created in July prompted a new discussion; this discussion centered around whether billions of dollars in fresh expenditure are actually needed, or if the stimulus spending is just getting started.
It’s All Because of the Money – Biden
President Joe Biden attributed much of the responsibility to the $1.9 trillion American Rescue Package, which he passed into law earlier this year. He emphasized that further healthcare and urban welfare investments (all of which are presently waiting in Congress) are required to keep the country on solid ground.
Join us for a conversation, "The Road to Recovery: How States Are Spending Federal Rescue Dollars," as we explore the implications of the $1.9 trillion economic relief package.
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— The Council of State Governments (@CSGovts) August 6, 2021
The economy is growing at its quickest rate in 40 years; the number of available positions has increased. Since the epidemic, the rate of unemployment has been at its lowest. Black unemployment is down, too, Biden said from the White House on Friday after leaving for the night in Delaware.
Biden thinks this is all because Democrats put into effect the tools needed early in his administration to combat the virus and the economic crisis, including the COVID vaccination, the COVID-19 vaccination plan, and the American Rescue Plan. Critics argue that hundreds of billions of dollars in government funding are superfluous, now that people are returning to work and inflationary fears are rising.
Is the Relief Money Still Needed?
Why, if the jobs and the economy are so excellent, is the president still advocating for large relief measures like the evictions moratorium, when the jobs and the economy are so good?
With the US hitting 100,000 cases yesterday we are not out of the woods yet. Not only do we need to reinstate the eviction moratorium, which expired today, but we need to renew demands for a real relief package ahead of the building wave.
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— Howie Hawkins (@HowieHawkins) July 31, 2021
On Friday, White House press official Jen Psaki rebuffed similar queries. She also denied that Republican-led counties letting greater pandemic welfare payments expire impacted July’s strong job growth. Psaki said she doesn’t see any indication in the statistics that certain states’ early termination of jobless benefits had any effect on today’s very strong figures.
Of course, there is stability across the country and across cities and territories, but it is due to a variety of initiatives that have helped many people get through this difficult period and return to business. Psaki said the White House understands there’s more work to be done, but they’ve never seen any sign of it yet.
@POTUS @VP I see you are going to tout the improvement in the economy today. Thank God. But wouldn’t a relief package help us more than all the individual stimulus plans. Continue to help us all with the relief plan until we are all well
— EllieEisenhauerWeber (@Eleanddon) August 6, 2021
Vaccines, according to the U.S. government, are behind people going back to work. Some contend that, aside from government funding, opening after more than a year of epidemic limitations is the single most important source of jobs and growth. The Biden process is effective; the Biden plan creates results and the Biden plan is driving the country ahead, according to Biden.
According to Chris Edwards, funding and fiscal policy specialist at the Cato Institute, a key issue is that all this is only happening via a Keynesian lens — so much spending instantly pumps up expansion, like a motorist pushing down the power pedal.
Biden and his team are oblivious to microeconomics. Almost all of the additional revenue planned would cause microeconomic inefficiencies that would stifle growth. That is, the expenditure would elicit a behavior pattern.