Biden's huge economic relief plan aims to tackle poverty, inequality head-on
He needs to act fast with his economic proposal which amounts to 9% of GDP as uncertainty will be the enemy of the new administration
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PRESIDENT-ELECT Joe Biden has tabled his near-term US rescue plan and surprised many with a US$1.9 trillion economic relief proposal. He is looking to avoid the mistake made by former president Barack Obama's administration: too little fiscal support following the global financial crisis. Amounting to 9 per cent of gross domestic product, on top of the US$900 billion passed in December, Mr Biden is tackling poverty and inequality in the US head-on.
Announced just days before Mr Biden's inauguration as president, his team recognises the advantage of striking early, especially after the tumult of recent weeks. Undoubtedly, the proposal was facilitated by the Democratic party securing the Senate majority with victories in Georgia. While Mr Biden is now better positioned to advance his agenda, many ambitious aspirations may be unattainable.
The Democratic Senate majority is razor-thin. There are blue dog centrist senators in the party. Democrats lost seats in House of Representatives elections and have a small majority. Republicans will baulk at the price tag. Pursuing Donald Trump's Senate conviction could exacerbate partisanship, distracting from the near-term fiscal agenda.
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