The plan to stimulate growth promised by Joe Biden and financed by 1900 billion dollars in additional public debt, was adopted Saturday evening in Washington by the Senate by 50 Democrats against 49 Republicans.
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Presented as essential to enable the United States to overcome the pandemic, the legislative text will likely be voted on in the same terms by the House of Representatives over the next few hours, without any votes from elected Republicans.
The final House vote can take place as early as Tuesday, preparing for an enactment ceremony at the White House celebrating the triumph of the entire Democratic family.
President Biden is already savoring his impending legislative victory, noting that "
the plan will begin to send checks as early as this March to the American people who so desperately need help
."
"
This will create more than 6 million jobs and increase the GDP by 1000 billion dollars
" underlines the tenant of the White House.
The 5.3% rebound in consumption, triggered in January by the previous $ 900 billion stimulus package signed by Donald Trump, will be amplified in the coming weeks.
It comes as vaccination campaigns are progressing briskly, facilitating the gradual lifting in many states of containment measures.
545,000 jobs were thus created in January-February, which greatly exceeds forecasts.
More than 8% growth expected
To date 22.5% of Americans over 18 have been vaccinated at least once, or more than 57 million people.
A total of 88 million Americans have received at least a first dose.
Inoculations continue at the rate of nearly 2 million per day.
The goal of 100 million vaccinations by May will probably be reached, which should stimulate a marked recovery in activity regardless of aid from Washington.
A growth rate of 8 to 10%, on an annual basis, is now considered probable over the coming months.
It must result from the combined effects of deconfinement, the acceleration of hiring with the resumption of activity in tourism, air transport and hotels.
It will be fueled by the dissaving of millions of relatively wealthy households little affected by the crisis, as well as by massive public aid.
Already in manufacturing and construction, signs of bottlenecks are increasing.
The law effectively provides for sending checks for $ 1,400 to Americans with an annual income of less than $ 75,000.
The amount is gradually reduced for wealthier tax households, before being completely eliminated beyond $ 160,000 for a couple.
The cost of this measure is $ 400 billion.
It is in addition to the 166 billion dollars already spent in early January, to pay millions of checks of 600 dollars sent in the same way to Americans, with the aim of stimulating consumption.
In addition, an additional weekly unemployment benefit of 300 dollars will be paid to some 9.5 million Americans without jobs.
Democratic Senator from West Virginia, Joe Manchin, fought fiercely to reduce this $ 100 allowance.
His fellow Democrats insisted on an amount of $ 400.
However like the Republicans, this centrist Democrat believes that the payment of 400 dollars each week in addition to ordinary allowances which vary from state to state, provides more income to millions of Americans without qualifications and inactive than their initial jobs, to the point. to encourage them not to return to work.
Federal aid of $ 370 billion to states
More than half of the 22 million jobs that disappeared last spring have certainly been recovered since. But the White House and the Federal Reserve judge that the fall in unemployment from 14.8% in April 2020, to 6.2% in February 2021, masks an implicit unemployment rate still in the order of 10%, if the we take into account the millions of Americans who have given up working.
Democrats have tried unsuccessfully to include in law a gradual increase in the minimum wage to $ 15 an hour. The provision, unrelated to the pandemic, would have required a longer Senate debate process, empowering the Republican minority to block it.
Only $ 160 billion of the plan is allocated to the acquisition of additional doses of vaccines and to testing programs for Covid 19. On the other hand, $ 360 billion will go to states and local communities whose finances are strained by the pandemic. Republicans, noting that the fall in state tax revenues is proving to be much smaller than expected, see it as an abusive transfer for the benefit of communities managed mainly by elected Democrats.
170 billion dollars must finance the adaptation of schools and colleges to social distancing standards in order to accelerate the reopening of establishments. However, it will not be possible to spend most of these credits before 2022. The rest of the plan covers various assistance programs, such as tax credits for families with children, health insurance aid for the unemployed. , aid to households in arrears of payment on their rents and heating bills, or aid to airlines and catering companies.