House Signs Stimulus
On Wednesday, the United States House of Representatives approved one of the largest fiscal stimulus measures in United States history, a $1.9 trillion stimulus package.
The stimulus package is President Joe Biden’s first major move in office, and it’s expected to speed up the country’s economic recovery from the pandemic. Some features of the bill include direct payments of $1,400 to most Americans, extended unemployment benefits, $350 billion in state and local aid, and more funding for school reopening’s and vaccine distribution.
Many Americans are excited for the new stimulus package and the prospect of more economic relief, as the economic consequences of the pandemic have hit them hard. After the House approved the bill, President Biden tweeted, “Help is here.” The White House said Biden plans to sign the bill on Friday.
Once the bill is signed, Washington would have spent over $5 trillion in less than a year. I found it interesting that the newest stimulus combined with the other stimulus packages passed in the last year amount to just over $43,000 per U.S. household.
Washington’s stimulus spending is way more than it has spent on previous crises, and some experts fear inflation might rear its ugly head if the economy grows too fast. Experts also say economic suffering may present itself once the relief for American families expires over the coming year.
Whatever the case, this $1.9 trillion stimulus package is massive and is sure to reverberate throughout the economy.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.