![]() While acknowledging that the economy does need support, Senate Majority Leader Mitch McDonnell seems to have in mind a package with a price tag of no more than US$1 trillion. Without control of the Senate, there is very little chance that the Biden Administration would be able to garner the support for a budget support package of the size that it would like. With the economy now receiving another Covid supply-side shock, one would think that the Biden Camp will want an even larger stimulus package to support the economy than the US$2.2 trillion package proposed by House Speaker Nancy Pelosi. $2 trillion was needed to support the economy. economic recovery was running out of steam, while the White House and Congress appeared to share the view that a stimulus package of around U.S. Could such a package be custom-tailored and provide enough money to really bridge the gap easily? What should be included in this package? Can it even pass Congress?Įven before Covid’s recent resurgence, Fed Chairman Jerome Powell was warning that the U.S. Team Biden also suggested that if they were to impose such a lockdown they would want a stimulus package to cushion the blow. This seems to be the current situation in Europe, where they are now officially expecting that the European economy will experience a double-dip recession in the fourth quarter of this year as a result of the imposition of new lockdown restrictions in response to Covid’s European resurgence. However, even were to have a lesser rollback, we could see the U.S. If we had the same sort of draconian lockdown as we had in March and April this year, the impact on the economy could be as devastating as it was in March and April 2020. ![]() ![]() The degree of economic damage that any rolling back of the previous lockdown’s easing would have depends on how sweeping the renewed restrictions would be. Health experts believe that this could be putting us on track to have more than 300,000 cases a day by the time Mr. It is also that these cases are now increasing by more than 50 percent every two weeks. rate of infection has now risen to more than 130,000 cases a day. There be can be little doubt that the incoming Biden Administration will be forced to introduce some form of lockdown to bring the pandemic under better control as we wait for an effective vaccine to become widely available by the Spring of 2021. ![]() There seem to be some signs that the incoming Biden Administration wants to move in the direction of a four to six-week national lockdown upon taking office. debt levels could be headed–especially if a new stimulus bill gets passed. government.Īs I like to do, I asked my colleague Desmond Lachman, a senior economist at AEI, to get his take on what could happen next if Biden decides to move towards a nationwide lockdown early next year, the state of the economy and where U.S. With Coronavirus cases now over 142,000 per day, it seems very possible we could be headed towards a repeat of the same measures, especially when Joe Biden takes control of the U.S. While I do think it was effective and saved countless lives, I do worry about the lasting economic damage such a decision created. economy was shut down in an effort to “ slow the spread” of COVID-19. And the miscalculation could occur, no one can be sure what would happen and could end in Armageddon," Biden added later on in CNN's interview.One constant fear I have is that we are about to replay March to roughly May of this year when the U.S. ![]() "He, in fact, cannot continue with impunity to talk about the use of a tactical nuclear weapon as if that's a rational thing to do. When asked if the United States had considered what would happen if Putin did use a nuclear weapon and what the "red line" for his administration would be, Biden said it would be irresponsible of him to discuss specifics but made it clear that the Pentagon did not have to be asked to game out potential outcomes. And not because anybody intends to turn it into a world war or anything, but just once you use a nuclear weapon, the mistakes that can be made, the miscalculations, who knows what would happen," Biden continued. "The whole point I was making was it could lead to just a horrible outcome. "I think it's irresponsible for him to talk about it, the idea that a world leader of one of the largest nuclear powers in the world says he may use a tactical nuclear weapon in Ukraine," Biden told CNN's Jake Tapper in an exclusive interview with the network. President Joe Biden said he does not believe that Russian President Vladimir Putin would use a tactical nuclear weapon on Ukraine. As Vladimir Putin ramps up his nuclear saber-rattling, President Joe Biden issues a warning to Russia as it escalates its offensive in Ukraine. ![]()
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