U.S. ‘900 billion dollar economic stimulus plan’ provisional agreement

Secondary disaster support fund-unemployment allowance, etc.
Democratic-Republic, pass and find compromise
Vote on the 20th… Fleeing Federal Shutdown
The Wall Street Journal (WSJ) reported that the U.S. Republican Party and the Democratic Party have tentatively agreed on an economic stimulus plan for a novel coronavirus infection (Corona 19) worth about $900 billion (about 990 trillion won) that could not cross the congressional threshold due to confrontation between the two parties. Congress decided to vote on the afternoon of the 20th, just before the deadline for next year’s government budget (00:00 on the 21st).

On the 19th, Democratic Party leader Chuck Schumer told reporters, “We will carry out a vote on stimulus measures on the 20th to avoid the federal government’s temporary suspension of business.” As the two sides sought a compromise on the US central bank’s Federal Reserve System (Fed) emergency loan, which was a key issue, the’super stimulus plan’ agreement became visible.

The two sides last week △Payment of a second disaster support amount of $600 per person (about 660,000 won) △Payment of federal unemployment benefits of $300 per week △Small and Medium Business Salary Guarantee Program (PPP) △Payment of the cost of distributing the Corona 19 vaccine. They agreed to pass the stimulus package. The Republicans and Democrats have claimed $500 billion and $2.4 trillion respectively, but both sides have made small concessions and agreed to a figure of $900 billion.

But on the 17th, Republican Senator Pat Tumi disagreed when he insisted, “Let’s not allow the new administration to re-extend the Fed’s emergency loan system, which ends at the end of this year.” The Fed has been implementing a system that allows loans without approval from Congress since March this year, at the beginning of the spread of Corona 19. The Republican Party objected, “If the Joe Biden administration is launched in January next year, the system could be transformed into giving’blind funds’ to states controlled by the Democrats.” On the other hand, the Democratic Party confronted that “the central bank’s ability to respond to crises is weakening.” As concerns over the federal government’s shutdown became apparent, both parties found a trade-off in allowing the Fed to grant additional loans without parliamentary approval as the Democrats wished, but with legislative holdings in place, WSJ said. Republican Senate Representative Mitch McConnell also said, “With the debate over the Fed over, we can apply stimulus measures to families, workers, and workplaces in need of relief.” Initially, the deadline for the federal budget for fiscal year 2021 (October 2020 to September 2021) was September 30 this year. However, ahead of the presidential election on the 3rd of last month, the gap between the two parties was so great that the deadline was not met. The two parties have been in a tight confrontation phase with a short-term budget until the 20th of this month, and have managed to find an agreement. The U.S. has released $2.8 trillion in funding four times since April of this year to support the U.S. economy, which faced an unprecedented crisis from Corona 19. When this negotiation proposal is concluded, the funds that the US government has invested so far will increase to 3.7 trillion dollars (about 4070 trillion won).

At the same time, concerns about an increase in the US fiscal deficit are also rising. Already, the U.S. Treasury Department has announced that in fiscal 2020, which ended September 30 this year, the federal government’s fiscal deficit reached an all-time high of $3.13.2 billion. The previous biggest deficit was $1.416 trillion in fiscal 2009, when the United States poured large-scale fiscal budgets to overcome the global financial crisis.

In a vote on the 20th, the two parties also agreed to vote for the next year’s federal government budget of 1.4 trillion dollars. Like the stimulus bill, the budget bill is expected to pass smoothly.

Reporter Lim Bo-mi [email protected]Go to reporter page>