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Post-COVID Economic Challenges: Unemployment, Increasing Inflation & National Debt.
The document discusses the economic challenges in the post-COVID-19 era, highlighting issues like unemployment, inequality, inflation, and national debt. It emphasizes President Biden's $1.9 trillion relief package aimed at increasing income for the lowest earners and reducing child poverty. The webinar features insights from financial leaders on fiscal policies, predicting the impact of these measures on the economy and concerns about long-term debt sustainability.
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Post-COVID Economic Challenges: Unemployment, Increasing Inflation & National Debt.
- 1. POST-COVID19 ECONOMIC CHALLLENGES Unemployment,Inequality, Increasing Inflation & National Debt By Paul H Carr
- 2. WEBINAR Fiscal, Monetary, andEconomic Challenges of the Post-Pandemic Economy February 17,2021 Leaders of the Federal Reserve Bank of Boston, the Brookings Institution, & the Congressional Budget Office spoke to nearly 200 people via webinar
- 3. OUTLINE POST-COVID19 ECONOMIC CHALLLENGES IncreasedCOVID Unemployment, Increasing inequality since 1980 President Biden’s 1.9 Trillion COVID Relief Act Temporary Inflation Increased Debt, National Problem since 1980
- 4. “I think weshould do, what we need to do for fiscal and monetary policy, to get people back to work,” Rosengren said. “Once we’re at full employment, we shouldn’t have the same kind of expansionary fiscal policy. As long as a lot of people are unemployed, inflation increase should not be a problem. ”
- 7. COVID19 has increased already existing income inequality. TheBiden relief bill will increase the income of the lowest 20 % by 20%. Children will be lifted out of poverty
- 8. Martha’s Vineyard, MA, 2019 Ournephew Larry, MBA, has left his digital data mining job at Amazon to work for a small company, based in Boston.
- 9. Daughter Emily withKarin & Sean, Palmetto, FL, 2019 Emily, MA Education, teaches children with learning disabilities at a Broach School in Bradenton, FL Lives in on a 30-foot sailboat that is becoming too small for daughter Karin. They will get needed help from the Biden stimulus bill. Karin, French Horn, with Mother Emily, singing hymn.
- 10. The Biden COVIDRelief Bill could cut child poverty in half this year. For 500,000 poor families with two or more children, roughly $10,000 in aid will more than double their annual income. The bill accomplishes this in primarily two ways: a significant increase in stimulus payments per child, and a larger child tax credit that will benefit the lowest-income families in particular.
- 11. Predictions are difficult, especiallyabout the future.
- 15. The Biden Packagewill overheat our GDP, could result in inflation. Will it be temporary as shown? Republican
- 16. Phillip Swagel, Director,Congressional Budget Office “The good news, such as it is, is that the economy is doing better than we expected,” Swagel said. “The challenge of the fiscal situation remains daunting; it was daunting before the pandemic and it’s yet more daunting because of the pandemic.”
- 18. Boost to HouseholdIncome Primes U.S. Economy for Stronger Growth (WSJ 2/26/2021) Personal income grew 10% in January in second largest rise on record and spending rose 2.4%
- 19. A household incomeof $75,000/yr buys basic necessities, like food and shelter. Household over $75,000 does not increase happiness. (Gallup survey of Americans published in PNAS). THE RELIEF BILL $1400 CHECKS PHASE OUT FOR COUPLES OVER $150,000. Should it have been $75,000?
- 20. 1980 Inflation out ofcontrol.
- 21. 1980 Uncontrolled risinginflation led investors to buy gold.
- 22. Declining gold pricesindicated that inflation is not worrying investors
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- 26. Wendy Edelberg, Director,The Hamilton Project and Senior Fellow in Economic Studies, the Brookings Institution “At the end of this decade, we do indeed start to see debt-to-GDP rise, and rise without bound,” Edelberg said. “That suggests to me that over the next handful of years, we should be making some difficult decisions to change that long-term trajectory.”
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- 28. 1980, 2017 TAXCUTS FOR THE RICH INCREASED OUR NATIONAL DEBT 1998 TAX INCREASES LOWERED OUR NATIONAL DEBT 2008 Keysian Economics: During a depression, governments should increase debt, then pay it down.
- 29. In the past,we followed Keynes’ economics to use our strong economy to pay down our debt. Reagan Tax Cuts 70% to 28% The Dec 2017 tax law is increasing US Debt to WWII Levels
- 31. CONCLUSIONS POST-COVID19 ECONOMIC CHALLLENGES Pres.Biden’s $1.9 Trillion relief act is crafted to: Solve COVID Increased Unemployment & Inequality Help to reduce systemic inequality since 1980 Inflation should be temporary. Increased Debt: National Challenge since 1980 Increased taxes on those earning over $400,000
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