As of now, with the Georgia Senate seats heading to a run-off in January, all the Republicans have to do is win one of these seats to hold control of the Senate. This would leave fiscal policy at the mercy of a deeply divided Congress. Republicans will likely fall back on their hatred of a deficit, stymying legislation packages that will send large stimulus to the American people. On top of this, with interests rates already near zero, much of the monetary available has been exhausted.
With the odds seeming very daunting for President-elect Biden, there are some positives in the situation. For one, his nomination for the Treasury Secretary is former head of the Federal Reserve Janet Yellen. If approved, she will be the first practicing economist to hold the position in over two decades. Her knowledge and background will spark a great relationship with current head of the Fed Jerome Powell. Despite his now limited tools, Powell should be very cooperative and helpful to the Biden administration in their efforts.
How do you see Biden's recovery efforts going? Will a vaccine return things to normal, or will economic recovery have to steered by the new administration?
https://www.wsj.com/articles/biden-to-have-a-better-economy-in-2021-than-in-2009-but-worse-options-11606926003?mod=hp_lead_pos10
4 comments:
I believe that Biden's recovery efforts will eventually get us in a better position. However, the progress will not be immediate. We should expect a gradual shift towards our economy. Yet it is almost impossible to tell when we will get back to "normal".
the effect of Biden's policy will not be felt immediately but I believe they will help eventually just not a instant impact many are expecting , i do think that this new administration will have to steer our economy back up but thankfully they may have it a little bit easier then original though thanks to the promising signs of a vaccine
I agree with Kofi that the recovery will take time, but stimulus will help us get back into a better position. I think Biden will be able to get the stimulus passed, but it is more of a matter of how much. I think the vaccine will help somewhat at first, but I don’t see the full effect will occur for at least a year or two.
The recovery efforts are doing well. There is an effort being put into it, but it is obvious that right after the vaccine is released, everything might not just get back to normal. Many people are not planning to get the vaccine injected into their bodies, so there will be change, but it will take time.
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