What does the Biden administration mean for more help? – CBS New York

(CBS Detroit) — President-elect Joe Biden has a complete to-do list when he takes office on January 20th. Resolving the COVID-19 pandemic and rebuilding the economy may be at the top. His transition team is already working hard to make a plan.

Earlier this week, the Biden-Harris Transition Team announced the creation of the Transition COVID-19 Advisory Board, a group of public health experts in consultation with Biden and Vice President-elect Kamala Harris. As Biden says, “Countering the coronavirus pandemic is one of the most important battles our administration faces, and I get information from science and experts.”

Containing the virus is the key to rebuilding the economy. And the next Biden administration has already laid the foundation for that. He explains the basics of attacking an ongoing economic crisis in a recently announced emergency action plan to save the economy. It begins with blocking the virus through testing, tracking, and placement of medicines where they are most needed. The plan then aims to support SMEs, maintain employee salaries and work towards a second stimulus package.

>> Read: Economists say when drafting an aid package that “stimulation checks are not the most important”

Harry Holzer, a professor of public policy at Georgetown University and a former chief economist at the US Department of Labor, said: “There are signs that recovery will level off as the virus case load worsens. It will weaken recovery. This makes people reluctant to shop, eat at restaurants, etc. 3 The stimulus bill passed by Congress in May and signed by the president was poor with the dismissed workers. I think it did a very good job of helping them and stimulating recovery. The second stimulus package Without it, more people will suffer and the economic recovery will be weakened. “

It is not yet clear what the second stimulus package will take, and future events can influence how it sways. Prior to the election, Speaker of the House Nancy Pelosi and Treasury Secretary Steven Mnuchin focused on packages close to $ 1.8 trillion to $ 2.2 trillion. This included a second stimulus check and an additional weekly unemployment allowance from the federal government, but disagreements remained about aid to cities and states. Pelosi’s framework evolved from the $ 3 trillion Heroes Act passed by the House of Representatives in May, but the Senate did not take it up before the election. The Senate’s last unsuccessful stimulus package attempt amounted to $ 500 billion and did not include a stimulus check.

The Biden administration will see the revised HEROES law as a starting point. “I think the Biden people might start with Pelosi’s bill,” Holzer says. “Maybe they want to go near a bipartisan caucuse in the house. [which] Proposed a $ 1.5 trillion bill. of course, [Senate Majority leader Mitch] McConnell hasn’t come too far near it. I think the HEROES Act will be either Biden’s starting point or certainly a wishlist. But they will understand that it is unlikely to pass, or where they can end up. “

Senate rule remains in the air, and the consequences can have a significant impact on any form taken by another stimulus bill. As of this week, the Democratic Party seems to have 48 seats and the Republican Party has 50 seats. The two seats in Georgia have not yet been filled, as Georgia’s own rules require candidates to win a majority of votes. Neither race candidate has reached that threshold, and each election was sent to the final vote in early January. If the Republicans win either race, the Senate remains under their control. If the Democrats win both races, the Senate will return to their control, given that the Vice President will vote for the tie.

>> Read: Market strategists warn that “the pain felt on the main street is quite different from what is reflected in the stock market.”

The Democratic Senate will recognize a much greater stimulus, given the cooperation between the presidential office and the parliamentary Senate. The package will be more consistent with the HEROES method. A Republican-controlled Senate, a similar scenario, would probably lead to a much smaller package.

“Basically, McConnell has the power to block new bills,” Holzer says. “They talk about taking unused money from previous bills, but they’re small. If you want legislation, McConnell will take control of it. He has a great deal of power. Will have. They can strip some Senate moderates like Susan Collins, but McConnell still controls whether legislation passes. Unused from previous bills. McConnell is in a sort of driver’s seat, except for the slightest reallocation of money. “

And where does McConnell’s driving leave the economy and millions of unemployed? There are many factors to consider. “Does he re-evaluate?” Holzer wonders. “Do you believe he needs more now? Does he want to maintain a good relationship with Biden? There are other variables that could lead to whether he reassessed. McConnell Remember that he is the man who completely obstructed Obama’s agenda. He said publicly. [that] My goal is to make him president for the first time. He disturbed everything. Will he continue to get in the way of Biden, especially given the needs of the country? Last Friday there was a fairly strong US Department of Labor report issued in October figures. And they were pretty good numbers. And McConnell publicly said that this supported my position. We don’t really need a wide range of stimuli. “

The number of those jobs was somewhat promising. Employers added 638,000 jobs in October, down from 672,000 in September. This reduced the national unemployment rate to 6.9%, despite slowing growth. The number of long-term unemployed has increased by 1.2 million. Of the 11 million people currently unemployed, one-third are unemployed for at least 27 weeks.

>> Read: Stimulation Package Update: What will happen to the economy without a second stimulus?

The economy has improved in recent months, but is much worse than in February before the pandemic. We are also facing a nationwide deterioration in COVID-19. Over 144,000 new cases were reported on Wednesday, breaking the record for 136,000 new cases the day before. A record 60,000 COVID-related hospitalizations were also seen on Tuesday. Daily cases are increasing in 45 states and daily deaths are increasing in 39 states.

The surge in the number of incidents has already led to limits that could have a negative impact on the economy. Chicago has added new restrictions and curfew. New York and Minnesota are re-imposing their own restrictions. A top Biden adviser suggested shutting down the entire economy for four to six weeks to curb the spread of the virus.

Rapidly deteriorating health conditions can change McConnell’s view of the second stimulus. It’s hard to know, given that he still supports President Trump’s efforts to challenge the election results. That position also makes it difficult for McConnell to communicate his intentions for new stimuli, not to mention cooperating with the next administration.

“What other goals does he have in mind?” Holzer wonders. “Some of it is about the economy. Some is probably about Republican interests. Part of it is what he wants to do with Biden, which he has with Obama. Would be more supportive than the ones, and I’m still not sure if McConnell understood it. He may not be able to get his $ 5 trillion. Maybe he’s some You’ll be upset. So far, I don’t fully understand it. “

What does the Biden administration mean for more help? – CBS New York

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