"Double-Dip Rise Early Next Year"... Biden Pressures Democratic Party to Agree on Economic Stimulus Measures

NYT "Democrats pressured to reach agreement with Senate Republicans even if not large-scale"
Other policy options considered... Consumer bill and executive orders under review

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] President-elect Joe Biden's team is pressuring the Democratic Party to expedite discussions on economic stimulus measures to prevent a recession caused by the novel coronavirus disease (COVID-19). They emphasize the need for action amid concerns that the U.S. economy, which had shown a brief recovery, could fall into a 'double-dip' recession early next year due to the third wave of COVID-19 infections.

On the 22nd (local time), The New York Times (NYT), citing multiple sources, reported that Biden's team requested the Democrats to quickly reach an agreement with Senate Republicans, even if it is not the large-scale stimulus package exceeding $2 trillion that the Democrats have been pursuing.

Since the election on the 3rd, Biden, House Speaker Nancy Pelosi, Senate Democratic Leader Chuck Schumer, and other Democratic leaders have not been able to start active discussions with Republicans regarding the stimulus package. Pelosi and Schumer proposed to Senate Republican Leader Mitch McConnell to resume negotiations this month, but there remains a significant gap between the parties over the size of the stimulus package. The Democrats have been advocating for $2.4 trillion, while the Republicans have proposed around $500 billion.

Jen Psaki, a senior advisor to Biden's transition team, told reporters on the 20th ahead of a meeting between Biden, Vice President-elect Kamala Harris, Speaker Pelosi, and Leader Schumer, "Urgent assistance is needed to help families and small businesses during the lame-duck period," adding, "There is no time to delay, and it must proceed as soon as possible."

The NYT explained, "As consumption and economic activities freeze due to the resurgence of COVID-19, economists are warning that Congress must quickly pass a stimulus package," emphasizing that "the most important measure is the passage of the stimulus package."

Additionally, Biden's team is reportedly reviewing other policy options to reduce unemployment and prevent a recession. If the Democrats secure both seats in Georgia's runoff elections scheduled for January next year, they are considering passing a comprehensive or partial spending bill, including infrastructure, which was one of Biden's campaign promises.

Sources also indicated that there is growing support for issuing executive orders on Biden's first day in office, such as deferring student loan repayments without congressional approval. Other executive orders aimed at alleviating workers' economic burdens to prevent a fiscal cliff are also under consideration.

Furthermore, Biden's team is reportedly seeking ways to avoid the Trump administration's plan to end part of the Federal Reserve's emergency pandemic lending programs by the end of the year. One option under review, according to the NYT, is for the Treasury Department to provide new limits to assist small businesses again after Biden takes office.

This content was produced with the assistance of AI translation services.