Beden has a plan that could work.

U.S. President Joe Biden has proposed a $1.9 trillion fiscal stimulus plan to help the American economy recover from the damage caused by the Devid-19 pandemic. Many republics oppose it, suddenly prompted by a strict fiscal discipline, which they abandon mysteriously every time they enter the White House.

The tax cuts Donald Trump made for billionaires and large corporations in 2017 produced the biggest fiscal deficits ever recorded in the country's history, except for periods of serious economic recession and war. But the promised investments and promises were nowhere to be seen.

Under these conditions, the plan proposed by Biden is most necessary. Recent data shows a slowdown in US economic recovery, both in terms of GDP and employment.

There are strong indications that the recovery package will provide a great incentive for the economy: growth will generate significant tax revenues, not only for the federal government but also for those states and cities that today cannot guarantee even basic services to citizens.

Those who oppose Biden's plan are also giving credit to ominous warnings on inflation risks. True, some data suggests that wages in some sectors could be reduced. But if inflation increases, the United States has numerous fiscal and monetary means available to react.

Of course, the economy would be better off without zero interest rates. It would also be better if lawmakers approved industrial pollution taxes, and implemented greater prosperity in the tax system. There's no reason why richer Americans have to pay less taxes than the poorest.

The richest were less affected by the pandemic, while the regratious U.S. tax system seems more unfair than ever before. David-19 has destroyed several sectors of the economy, bringing about the bankruptcy of many companies, especially smaller ones.

Failure to adopt a large package of recovery measures can produce even greater damage, as poor economic performance causes anxiety (compared to that caused by pandemic), leading to a vicious circle in which highly prudent behavior reduces consumption and investment as well.

Poor balances and bankruptcys feed a type of “virus” that will infect the entire economy. In the end, companies that went bankrupt during the pandemic will not be able to take the lead even when David-19 is brought under control. The fact that the epidemic is global makes things worse.

While many developing countries have not yet been hit with the severity they feared, the unprecedented slowdown in the global economy is bringing down the demand for US exports. China played an important role in the recovery after the 2008 financial crisis. It was the only major economy that grew in 2020, but still had a far weaker performance than a decade ago.

China is now likely to increase its commercial balance, providing a slightly greater incentive for global growth. The first priority of Biden's plan is to set up funds available to fight pandemic, allow the return of students and students to schools, and to ensure that local states and authorities continue to provide services (health, education, etc).

The duration of unemployment benefits will not only help the most vulnerable. Offering financial security could also lead to increased spending, which benefits the entire economy. During Donald Trump's presidency, programmes on small business were not effective enough.

That, in part, after much money went to businesses that were not really small, and partly because of a number of bureaucratic problems. It seems the Biden administration is correcting these problems. If that is true, strengthening assistance in economic activities will not only help in the short term but also turn the American economy on track when we have left the pandemic behind.

Economists will discuss every aspect of the plan: how much money must go towards this or that sector; what should be the threshold that gives someone the right to get help in money; how to reform the unemployment profit programme.

Reasonable people may not agree on the details. So addressing their concern is part of the political compromise. But two things must be agreed that all: large sums of money are urgently needed; and to oppose this need, as the Republicans do, is cruel and short - lived. / “International” World.al