The United States Senate narrowly voted in favor of the American Rescue Package over the weekend. The $1.9 trillion stimulus package is being presented as a savior for the citizens still suffering from the COVID-induced economic crisis, but the actual impact of the package is likely to be a net negative.
Before we get started, here is a quick overview of where the $1.9 trillion is reportedly going:
- Stimulus checks: Individuals making less than $75,000 and married couples making less than $150,000 will receive direct payments of $1,400 per person. The bill will also provide $1,400 per dependent.
- Unemployment benefit boost: The bill extends unemployment programs through early September, including the $300-per-week federal supplement provided in the last stimulus plan passed in December.
- Child tax credit: For 2021, the bill would temporarily expand the child tax credit, which is currently worth up to $2,000 per child younger than 17. Under the legislation, the tax credit would be as much as $3,600 for children up to age 5 and as much as $3,000 for children 6 to 17.
- Local government: It would provide $350 billion for states, local governments, territories and tribal governments, and it contains $130 billion for schools. It also includes funding for colleges and universities, transit agencies, housing aid, child care providers and food assistance.
- Small business: The bill contains funding to help businesses, including restaurants and live venues, and it includes a bailout for multi-employer pension plans that are financially troubled.
- Vaccine: The legislation includes $160 billion for vaccine and testing programs to help stop the virus’s spread and ultimately end the pandemic. The plan includes money to create a national vaccine distribution program that would offer free shots to all U.S. residents regardless of immigration status.
There is plenty more in the $1.9 trillion stimulus package but you get the idea. The new administration is being heralded as the savior of the low and middle class. It is being praised for sending minimal amounts of money to small businesses (less than $50 billion for restaurants, venues, and other small businesses). We, the American people, are even being told that the government has cut poverty!
No, seriously. The Washington Post published an article over the weekend titled “Biden stimulus showers money on Americans, sharply cutting poverty and favoring individuals over business.” How these journalists know that the stimulus package, which hasn’t even been implemented yet, has cut poverty is confusing to me. They must be able to see into the future.
Obviously, no one can see into the future. No one knows exactly the impact of this stimulus package. Some people claim it will help the people who need it most. Others believe it will lead to higher levels of inflation, which disproportionately hurt the lowest socioeconomic classes.
One thing we should all be able to agree on is that the Washington Post headline is pure propaganda. These journalists have become a mouthpiece for the state. Showering money on Americans. Sharply cutting poverty. It sounds like a third-world dictator wrote these headlines in an attempt to tell their citizens that everything is going to be alright….[ ]