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Biden’s Economic Emergency Plan to Support the North American Economy in 2021

By: Dr. Alejandro Díaz-Bautista, Economist (Ph.D.)

Biden begins his administration with actions to support the growth of the United States economy in 2021.

“The growth of the United States economy in 2021 and 2022 will have a positive effect on the economy of Mexico and Baja California due to the economic synchronization between the economies of Mexico and the United States,” said Dr. Alejandro Díaz Bautista, professor, an international economist, as well as a research professor at the Northern Border College (Colef).

President Joe Biden’s $1.9 trillion Coronavirus pandemic relief plan proposes the third round of $1,400 stimulus checks for most Americans. Families in the United States have been hit economically by the coronavirus pandemic during 2020 and in January 2021.

Therefore, aid must be extended to millions of households still suffering the economic consequences of the coronavirus pandemic in the United States in 2021.

Support for another stimulus package may gain traction given various events in early 2021.

The weaker outlook for the job market, with a million higher-than-expected jobless claims during the first week of January, as well as a record number of COVID-19 infections and deaths in January 2021 could prompt lawmakers to support Biden’s plan for additional economic stimulus.

Janet Yellen, elected by President Joe Biden as Secretary of the Treasury, said on January 19 that the incoming administration would focus on getting its financial aid plan for the pandemic approved quickly.

The plan to provide more direct aid to lower and middle-class households could help raise GDP by 0.7%, although the bill’s other measures, such as a higher minimum wage and aid to states, could boost GDP growth by 1.5% in the United States.

While the president of the United States, Joe Biden, signs two new executive orders that aim to facilitate the arrival of social assistance to Americans.

The executive orders are intended to alleviate the economic situation of the households most affected by the coronavirus pandemic in the United States.

In one of the orders, it is detailed that a website will be enabled where people who have not made any income statement will be able to provide their data to demonstrate that they are eligible for direct aid launched by the pandemic.

Another of the executive orders consists of a program to protect federal employees during the pandemic and to investigate the possibility of forcing those who want to contract with the administration to pay a minimum wage of $15 an hour.

The new president has assured that his plan will create 7.5 million jobs and that a check for $1,400 will be approved so that, added to the previous check of $600, the $2,000 dollars promised by the Democrats will be delivered.

Consider that, in January 2021, there are ten million more unemployed in the United States than there were in March 2020 due to the impacts of the coronavirus pandemic.

On the other hand, the president of the United States and the president of Mexico, Andrés Manuel López Obrador, spoke by phone on topics such as the fight against the Covid-19 pandemic, migration, and cooperation between both countries.

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