business

For Biden, how to help mangled economy is next obstacle

8 Comments
By JOSH BOAK

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8 Comments
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The Georgia Senate seats are firmly Republican, so don't plan on that change.

Biden needs to get as many Americans vaccinated as possible as soon as it is safe. That's job #1.

Next, get the travel industry going again - need to keep hotels and airlines on life support until that can happen.

Restaurants fail all the time. Not much new there. The lack of taxes collected will hurt state funds. States can't run deficits, unlike the Feds, so the Feds will need to be ready to help states with their tax shortfalls.

Then just don't put back too many federal rules too quickly that are anti-business. Those can wait a year.

And fire the FCC chair ASAP. He's been a shill for the telecoms his entire time on the committee. That needs to end. Put someone in and give them the power to actually collect unpaid fines. We see large FCC fines all the time, but in reality, only about $7K of over $208M has been collected. https://arstechnica.com/tech-policy/2019/03/fcc-fined-robocallers-208-million-since-2015-but-collected-only-6790/

4 ( +5 / -1 )

He inherits a firm base and an economy on the mend from Covid - especially now the vaccine may be on the way.

But his record of economic (mis)management along with his progressive Dem caucus plus a possibly Repub Senate  does not bode well for the economy

-2 ( +2 / -4 )

To make it short, you get and deserve now what you’ve elected. Or much less. lol

0 ( +1 / -1 )

AP VoteCast, a survey of more than 110,000 voters, found that the recession’s harm has mostly struck lower-income households...

That's what happens when you drop a hair over 1/2 of the covid funds into business and a bit less than a fifth to workers and families. We already knew trickle down economics was a fraud. But hey... The market is up while unemployment is at record levels, so I guess they made sure the scoreboard for the wealthy still works, even as the economy itself continues to slide into the abyss.

0 ( +2 / -2 )

The unemployment rate was 6.9%, compared to 4.7% when Trump took office.

It would be more instructive to compare with say, January, prior to the onslaught of the pandemic.

2 ( +2 / -0 )

First, we don't have the official results from the Elections 2020 yet. Trump and his cohorts are planning to stage a Constitutional coup through either the state legislatures or the Supreme Court. The beginning days of December will be a bloodbath fight between both Trump Republicans and Democrats.

Secondly, the Democrats lost the seats in the House, while they still retain the majority. They also lost against the Republicans in the key state legislatures and the federal Senate. It is even worse that now Republicans got 6 seats in the Supreme Court. In truth, the Democrats failed the elections. Joe Biden will get little thing done with the hardcore Republicans in the Senate and the Supreme Court. For China hawks, the anti-China policies from Trump era will remain, and Biden will have no choice to continue and expand what Trump had created against China. Joe Biden will likely be the one-term president, if the current results are actually certified by the Congress, as his health isn't optimal and his policies are likely defeated by the Republicans at each round.

Thirdly, I expect the whole anti-China Cold War will continue. Bipartisan efforts against China won't be halted as Obama ignited it, and Trump exploded it. If any economic policy aims to hurt China and benefit the USA, both parties will agree strongly. Like Trump's plan to bring back and subsidize high-end manufacturing or critical manufacturing industries for the sake of national securities. Trump's medical manufacturing programs are actually inspirational, and I think both GOP and DEM will continue to expand them. However, anything related to "socialism" will be brutally killed at the Republican Senate. Like the Medicare for All or Universal Basic Income.

4 ( +4 / -0 )

"state and local governments that are starving for tax revenue"

State and local governments have the ability to raise their own tax revenue, whether on a temporary or a permanent basis. There are many methods to soak the rich in their jurisdictions, and the higher earners whose finances are improving. In addition, they can issue their own bonds to also raise revenue. They also have the ability to slash expenditures. Finally, most state, local and municipal governments have the ability to remove the hobbles that require them to run balanced budgets - changing their state constitutions and codes, and amending municipal compacts. They have many solutions but want the easy money from the federal stimulus trough.

In summary, governments below federal level do not need a stimulus. The stimulus should be directed to those citizens who need it.

0 ( +0 / -0 )

Finally, most state, local and municipal governments have the ability to remove the hobbles that require them to run balanced budgets - changing their state constitutions and codes, and amending municipal compacts.

Since states do not issue their own currency they have no ability to run fiscal deficits in order to stimulate aggregate demand. This is in addition to any legal constraints written into their respective state constitutions.

0 ( +0 / -0 )

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