March 7, 2021, one year of covid-19 Pandemic has passed by the death of American people has rolled up to 500,000 by middle of February. However, we are still living in the middle of the pandemic. Millions of American still struggling in suffering sickness, unemployment, and lack of affordable childcare while most of schools remain closed.
President Joe Biden has proposed another $1.9 trillion COVID-19 relief bill. After almost 12 hours debate in the senate, the bill barely passed with 50-49 votes. This bill will pass to the House for approval on next Tuesday, and then it will go to Biden to be signed into law.
The stimulus package includes extend $300 weekly unemployment benefits through September 6, distribute extra $1400 to individual who makes less than $80,000 annually and billions of dollars for states and municipalities. schools, small businesses, and vaccine distribution.
Many amendments were introduced by Senate Republicans, however most of them defeated by democratic majority. Few amendments were passed including extended unemployment benefits, school reopening and veteran’s educational benefits. Every Republican senator and eight democratic senator including Kyrsten Sinema of Arizona were opposed the minimum wage amendment. Note that the current federal minimum wage is only $7.25 per hour.
Many republicans are afraid this extra $1.9 trillion stimulus package will continue enlarges the federal deficit which was $3.1 trillion last year. But some economist believes that the package is large enough to erase the U.S. GDP gap to the pre-pandemic trend around midyear. A new high-water mark for GDP will not coincide with full recovery in the labor market. As of February, 9.5 million Americans remained out of work.
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