Parties discussed economic aid package to cope with coronavirus
A group of Republican senators had a “productive discussion” with President Biden about a new economic assistance package to overcome the effects of the pandemic, but no agreement could be reached. This was announced by Senator Susan Collins.
She said the meeting at the White House was “great” and she hopes that Congress can pass another economic aid package.
Joe Biden said he hopes for bipartisan support in Congress, but he “will not agree to a package that is out of time,” according to a White House statement.
President Biden and Vice President Kamala Harris had a “substantial and productive discussion” at the White House with Republican senators. The U.S. leader told the senators that their $618 billion economic aid package does not meet the challenges in many areas, the White House said in a statement.
President Biden’s $1.9 trillion coronavirus proposal would restore the economy to pre-pandemic levels by this summer, according to an analysis released Monday by S&P Global.
“We found that if the $1.9 trillion packages were enacted, the U.S. economy would reach pre-pandemic levels in the second quarter of 2021,” the report said.
As for job creation, S&P said the infusion of government funds would likely bring unemployment below 4 percent by mid-2023, a year earlier than the current forecast. The national unemployment rate was 6.7 percent in December, according to the latest data from the U.S. Labor Department.
S&P also analyzed a $618 billion counterproposal from a group of 10 Republican senators. The measure is also projected to boost the economy but maintain a lower growth trajectory over time.
The report came out the same day as the Congressional Budget Office report, which projected an economic output gap of $808 billion over the next four years. This means that the smaller bailout package proposed by Republican senators may be enough to restore economic growth.
However, S&P analysis showed that the U.S. leader’s proposal would maintain a higher growth trajectory.