Over the past several months, Congress has tried and failed to agree on another stimulus package. While there has been talk that they could come together on a plan before the end of the year, it is still up in the air on if it will actually happen. So, what does this mean for President-elect Joe Biden as he prepares to take office in January? According to Yahoo Finance, Biden is expected to push for direct payments amidst the ongoing COVID-19 crisis.
Biden has already announced several individuals who will be a part of his economic team. The former vice president’s pick for Treasury Secretary, Janet Yellen, has a background in labor economics. Additionally, Cecilia Rouse, Biden’s pick to lead the Council of Economic Advisers, is described as a “labor economist with a focus on the economics of education.” Rouse’s two deputies, who are economists, also have built their careers around workers and labor rights. The details regarding Biden’s team will influence how they approach the current health and economic crisis. Ida Rademacher, the director of the financial security at the Aspen Institute, said, “They understand that what’s been happening is that even though the economy has been growing, household income has become a smaller and smaller share of that.”
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Since Biden’s economic team is made up of labor economists, specific actions regarding stimulus legislation will likely be a bigger part of the conversation once he takes office. In particular, his team’s background in labor economics could mean that more checks will be sent directly to Americans. Rademacher added, “I certainly think that there’ll be additional need for stimulus conversation next year.” She went on to say that even if a smaller measure is agreed upon in the upcoming days, “I would totally expect that direct cash payments are back on the table.”
At the moment, Congress is still in the midst of stimulus negotiations. It has been about eight months since Congress introduced their first — and so far only — stimulus package, the CARES Act. Under the CARES Act, eligible Americans were entitled to a one-time check for $1,200. Recently, a bipartisan group of lawmakers introduced a $908 billion stimulus proposal. However, that plan does not include another round of stimulus checks. While lawmakers such as Speaker of the House Nancy Pelosi and Senate Minority Leader Chuck Schumer have voiced their support for this proposal, others such as Senate Majority Leader Mitch McConnell have already shared their disapproval of it.
