FOR IMMEDIATE RELEASE
April 29, 2021
Maddy McDaniel, Communications Director
100 DAYS OF PUBLIC INVESTMENT LEADS TO ENORMOUS ECONOMIC GROWTH
Economy Headed For Best Year Since 1984, Thanks to Public Investment Passed in the Biden Administration’s First 100 Days
U.S. GDP Rose at Annual Rate of 6.4% in the First Quarter of 2021
Jobless Claims Hit a New Pandemic Low for the Third Straight Week
73% of Voters, Including 67% of Independents and 57% of Republicans, Support the Proposed $2.25 Trillion American Jobs Plan
65% of Americans Support the American Rescue Plan By A +34 Point Margin
WASHINGTON, D.C. — Today marks 100 days of the Biden administration, which means 100 days of historic levels of public investment that has put the United States on the road to economic recovery.
The United States is leading the global economic recovery from the covid pandemic, thanks to the public investment in the American Rescue Plan. U.S. GDP rose at an annual rate of 6.4% in the first quarter of the year, and jobless claims have hit a new pandemic low for the third week in a row — putting the economy on track for its best year since 1984.
“After just 100 days of the Biden administration, GDP growth is skyrocketing, unemployment is down, consumer confidence is up, and Americans are slowly beginning to regain their footing after a devastating year,” said Zac Petkanas, senior advisor for Invest in America. “This is a direct result of the large-scale public investments in the overwhelmingly popular American Rescue Plan that put checks in pockets, shots in arms, and people back to work. Now it’s time to build on that success with more investments to create millions of high paying jobs through the American Jobs Plan and American Families Plan.”
Here are a few highlights from the past 100 days:
CNBC: Americans support Biden’s spending and want him to spend more, polls show
Americans broadly back the big-ticket spending proposals that have defined President Joe Biden’s first 100 days in office, a variety of recent polls show.
Surveys show many more Americans approve than disapprove of the $1.9 trillion coronavirus relief bill Biden signed into law in March — by far his most significant legislative victory to date.
Polls also find Biden’s $2 trillion infrastructure plan is already popular with majorities or pluralities of respondents.
The Wall Street Journal: Welcome to Joe Biden’s Boom Economy
Welcome to the Biden boom. While the first quarter of 2021 is history, the data are still coming in. “Forecasts” of real economic growth, based on partial data, now run in the 7% to 8% range. More important, there is a good chance the stellar first quarter won’t be a flash in the pan. The Wall Street Journal’s recent poll of economists registered an average forecast of 6.4% growth over the four quarters of 2021.
If that happens, it will mark the fastest four-quarter growth spurt since 1984. The 1983-84 boom, which came after a deep recession, led to Ronald Reagan’s declaration of “morning in America”—and his smashing 1984 electoral victory. Like the Reagan boom and the Clinton boom, the Biden boom won’t be due entirely to the policies of the president. But they are sure helping.
Enter President Biden, and exit GOP support. In its first major legislative achievement, the Biden administration managed to get the $1.9 trillion American Relief Plan passed last month—with no Republican votes. The plan is giving the economy a big shot in the arm right now.
Wall Street Journal: U.S. Economy Grew Robustly in First Quarter
It is possible first-quarter output may have returned to pre-pandemic levels, he said.
That would mark one of the most remarkable turnarounds on record, given the severity of last year’s downturn.
The upshot, economists say, is that the U.S. is leading the global economic recovery, a reversal of roles from the 2008 crisis when countries such as China and Brazil led the way while the U.S. recovery lagged behind.
Economists expect economic growth to pick up further in the second quarter and remain steady in the second half of the year. Many expect output to grow between 6% and 7% in 2021.
New York Times: G.D.P. growth accelerated in the first quarter.
“We’re running on all cylinders in terms of economic activity,” said Scott Anderson, chief economist at Bank of the West in San Francisco.
Tom Gimbel, chief executive of LaSalle Network, a recruiting and staffing firm in Chicago, said: “It’s the best job market I’ve seen in 25 years. We have 50 percent more openings now than we did pre-Covid.”
Morning Consult: Among the Three Stimulus Packages, the Latest Has Led to the Fastest Rise in Consumer Confidence
During the five days since the signing of the American Rescue Plan, Morning Consult’s Index of Consumer Sentiment increased by 2.7 percent, compared to 0.1 and 0.7 percent increases five days after the signing of the $2.2 trillion CARES Act in March and the $900 billion COVID relief package in December, respectively.
The rapid increase in confidence following the third stimulus bill reflects the size of the additional funds included in the third bill combined with the timeliness of those funds. The American Rescue Plan provides most Americans with $1,400 stimulus checks, larger than both of the checks provided in the previous rounds of stimulus.
Editor Pen: Goldman Sachs predicts economic boom on US Covid recovery
Goldman Sachs has forecast an economic boom for the US as the country recovers from the Covid-19 pandemic.
In a 28 March client note titled “anatomy of a boom” the bank’s analysts said their earlier predictions of a speedy recovery were being borne out by the early data coming out of the US.
“The post-vaccine reopening of the economy is barely underway, but our expectation of accelerating sequential growth is transitioning from forecast to fact,” the note from Goldman Sachs’ senior economist Spencer Hill said.
The New York Times: Stimulus Bill Transforms Options For State and Local Governments
The biggest infusion of funds in decades will soon start, putting state, local and tribal governments in a situation they have not experienced in years: Items that had long seemed totally unaffordable are now well within reach.
Mr. Dyer said his city had been weighing potential layoffs of more than 200 city employees, including police officers and firefighters, as it faced a $25 million budget deficit. But the bill put an end to any layoff discussions. Fresno, a city of 531,000, was poised to receive $177 million.
“I think my residents know I don’t give a hoot about party — all I care about is making sure the street sweeper runs, the police show up and the water doesn’t stop,” said Acquanetta Warren, a Republican who is the mayor of Fontana, a working-class suburb east of Los Angeles set to receive $52 million.
Forbes: The $1.9 Trillion American Rescue Plan Offers Great News On Health Insurance; Here Are The Provisions That Cut Insurance Costs
When President Biden signed the American Rescue Plan Act of 2021 into law on Thursday, $1,400 direct stimulus checks and extended unemployment benefits got most of the attention.
But the American Rescue Plan contains many other provisions, including several that have the potential to substantially improve health insurance affordability for millions of lower- and moderate-income Americans.
According to Chen, 25 million Americans could benefit from the new law, including 13.2 million Americans who can now access heavily subsidized insurance through the Marketplace; 1.5 million who could save money by switching their individual insurance for coverage from the Marketplace; and 10 million who are already in a Marketplace plan but will save money through more generous subsidies.
The Wall Street Journal: Child-Care Providers Get Billions in Covid-19 Relief Law
The coronavirus relief law signed by President Biden last week pours nearly $50 billion into child care in a bid to keep struggling daycare centers from closing just as the people who rely on them return to work.
But the law, in addition to $10 billion in assistance from December legislation, represents the largest one-time U.S. investment in child care, said Mario Cardona, chief of policy and practice at Child Care Aware of America, an advocacy group.
A faster return to child care means a faster return to work and less disruption in parents’ career paths.
The Washington Post: Biden stimulus showers money on Americans, sharply cutting poverty and favoring individuals over businesses
“The roughly $1.9 trillion American Rescue Plan, which only Democrats supported, spends most of the money on low-income and middle-class Americans and state and local governments, with very little funding going toward companies. The plan is one of the largest federal responses to a downturn Congress has enacted and economists estimate it will boost growth this year to the highest level in decades and reduce the number of Americans living in poverty by a third.
“This round of aid enjoys wide support across the country, polls show, and it is likely to be felt quickly by low- and moderate-income Americans who stand to receive not just larger checks than before, but money from expanded tax credits, particularly geared toward parents; enhanced unemployment; rental assistance; food aid and health insurance subsidies.”
HuffPost: Democrats’ Relief Bill Shores Up A Million People’s Pensions. That’s A Huge Deal.
“The Senate bill, like the version that recently came out of the House, addresses what has become a crisis among multiemployer pension plans. These plans are negotiated between unions and employers in fields where workers tend to change jobs a lot, like construction, trucking and mining. Some of them have fallen into rough shape as industries have changed and union jobs have disappeared.”