Yahoo Finance Stimulus 2024: How a Biden Re-Election Could Impact the Future of Stimulus Checks
Joe Biden’s first term as president took place in the midst of a global pandemic, when shutdowns, supply chain interruptions and reductions in the workforce put a significant strain on the economy. The Biden administration was generous with stimulus checks and other economic support then. What might his reelection mean for future stimulus checks?
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It’s notable that the economy has bounced back quite well under Biden’s tenure as president. According to The New York Times, the economy has seen a 3.1% growth rate between 2022 and 2023, and formerly steep inflation has come down from its highest peak.
However, experts continue to hint at a possible economic slowdown in the coming years. While there’s no way to know for sure what the economy will do, or how Biden might act given the specific factors shaping it, precedent can teach us a lot about what he might do if reelected.
Financial and legal experts explain what a Biden presidency could mean for more stimulus payments.
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The American Rescue Plan
To combat the economic strains of the pandemic, the Biden administration proposed the American Rescue Plan, which Congress passed in 2021. It offered a variety of economic stimulus including:
$1,400 per-person stimulus checks for qualifying individuals
Extended unemployment benefits that included the self-employed
Enhanced tax credits, such as increasing the Earned Income Tax Credit and the Child Tax Credit
Small business loans and grants
While the worst economic impacts of the pandemic appear to be mostly behind us, experts continue to talk about a possible economic slowdown or recession in the next couple of years. If the economy stutters, Biden has already positioned himself as friendly to stimulus checks.
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How Would Biden Handle a Recession?
Loretta Kilday, attorney and owner of Debt Consolidation Care, said, “I would expect President Biden to act swiftly and decisively if faced with a potential recession in his second term. He has consistently shown a willingness to open the stimulus spending taps widely during economic crises, so I anticipate similar interventions if we hit another downturn.”
She even predicted that should Biden be reelected into a recession, he would propose at least $1 trillion in direct federal aid within his first hundred days of a recession.
“He will likely push Congress for extended unemployment benefits, student loan forgiveness, expanded medical subsidies, broad tax credits for low- and middle-income families and public infrastructure investments tied to Democratic environmental priorities. He firmly believes in wielding wide-scale government expenditures and budget deficits as tools to restore equilibrium in times of crisis.”
In this event, she predicts Republicans will resist high spending and demand some redirection of funding toward their own policy goals. However, “Biden will leverage unilateral budget reconciliation measures to enact much of this liberal stimulus spending without making major concessions if political roadblocks emerge.”
In essence, Kilday said, Biden will stay true to his legacy of dealing with a weakened economy by opening up the government wallet without much fiscal restraint.
“He sees spending during downturns as investments in American families, not handouts,” she stated. “So despite its risks, expect government stimulus spending to grow substantially if Biden must confront a real recession as president again.”
Support for Businesses
Alana Gibson, chief operating officer at DGR Legal, a legal services firm, added that businesses could also expect, if not outright stimulus, then support in an economic downturn under President Biden.
“Based on President Biden’s previous approaches to economic stimulus, it is reasonable to anticipate that his administration would prioritize direct financial support to individuals and businesses, enhanced unemployment benefits and significant investment in infrastructure to stimulate job creation and economic growth,” she said.
Expanding Sectors for Economic Stability
Also, Gibson suggested that Biden’s policy orientation will see an expansion of sectors such as renewable energy, healthcare and education, where he might target stimulus efforts to support sustainable growth and social equity.
“The administration’s focus on building a more resilient economy also hints at potential stimulus measures that address immediate economic challenges and aim to fortify against future crises through investments in technology, supply chain diversification and workforce development.”
Though no one can truly predict the future, Biden’s consistency in policy and past actions suggest that should Americans need support in the form of stimulus, Biden is likely to grant it.
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This article originally appeared on GOBankingRates.com: Stimulus 2024: How a Biden Re-Election Could Impact the Future of Stimulus Checks
