{"id":4540,"date":"2021-03-11T10:49:29","date_gmt":"2021-03-11T15:49:29","guid":{"rendered":"https:\/\/lions.financial\/?p=4540"},"modified":"2022-11-29T16:34:33","modified_gmt":"2022-11-29T21:34:33","slug":"implications-of-1-9-trillion-stimulus-package","status":"publish","type":"post","link":"https:\/\/lions.financial\/hi\/implications-of-1-9-trillion-stimulus-package\/","title":{"rendered":"Implications of $1.9 trillion stimulus package"},"content":{"rendered":"

The Senate-amended $1.9 trillion massive stimulus package aka the \u201cAmerican Rescue Plan\u201d (ARP) was narrowly passed by the House on Wed 3\/10\/2021 on a strictly partisan vote basis: 220 (50.9%) Democrats vs. 212 (49.1%) Republicans + 1 Democrat (Rep. Jared Golden, Democrat, Maine).<\/p>\n

President Biden plans to sign ARP into law on Fri 3\/12\/2021, after a primetime TV broadcast on Thu 3\/11\/2021 to sell it and the Democratic party agenda to the public and voters in USA.<\/p>\n

Following are the package\u2019s major proposal categories and implications:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Proposal Category<\/strong><\/td>\nWhat It Is<\/strong><\/td>\nMarket Implication<\/strong><\/td>\nLF Implication<\/strong><\/td>\n<\/tr>\n
Unemployment payment supplement<\/p>\n

(Estimated cost = 155.76 million 2020 USA workforce \u2013 9.5 million no longer looking for work because of COVID-19 health and economy impact = 144.26 million x 4.85% unemployment rate, given 6.2% current unemployment vs. 3.5% unemployment rate pre-pandemic = 7 million x $300 weekly supplement x 29 weeks till Labor Day Sep 6 = $60.9 billion short-term)<\/td>\n

\u00a7\u00a0 $300 per week supplement to State-issued unemployment payments for W-2 workers until Labor Day Sep 6, 2021<\/p>\n

\u00a7\u00a0 Also extends CARES Act PUA\/Pandemic Unemployment Assistance for 1099 gig workers and others not traditionally eligible for unemployment aid + PEUC\/Pandemic Emergency Unemployment Compensation for the long-term unemployed for 79 weeks up to 86 weeks in high unemployment states + $100 per week supplement for W-2 and 1099 MEUC\/Mixed Earner Unemployment Compensation<\/p>\n

\u00a7\u00a0 An individual\u2019s first $10,200 in jobless benefits is tax-free<\/td>\n

\u00a7\u00a0 In the short-term:<\/p>\n

\u25a1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Given $300 per week \u00f7 30 hours per week = $10 per hour for on-the-books workers, where the current unemployment is highest, this will slowdown motivation of low-income workers to find on-the-books work till after Labor Day Sep 6, 2021<\/p>\n

\u25a1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 This slowdown will prompt employers to further automate and\/or reconfigure low-income workers\u2019 job functions<\/p>\n

\u00a7\u00a0 In the mid-term: Increased automation will result in an \u201cold economy\u201d jobless recovery, as happened with the Obama administration\u2019s $900 billion TARP\/Troubled Asset Relief Program stimulus jolt during the 2007 \u2013 2009 Great Recession<\/p>\n

\u00a7\u00a0 In the long-term: An \u201cold economy\u201d jobless recovery will prompt additional investment in job \u201cold economy\u201d worker re-training and re-direction programs, and accelerate timeframe to raise minimum wage to $15 per hour<\/td>\n

\u00a7\u00a0 In the short-term: In descending order of importance, focus on providing risk management, business consulting and capital raise services to tech solution companies focused on automating the following job functions:<\/p>\n

\u00fe\u00a0 Assembly-line, factory workers<\/p>\n

\u00fe\u00a0 Bus drivers, taxi drivers, truck drivers<\/p>\n

\u00fe\u00a0 Phone operators, telemarketers, receptionists<\/p>\n

\u00fe\u00a0 Cashiers<\/p>\n

\u00fe\u00a0 Bank tellers, clerks<\/p>\n

\u00fe\u00a0 Packing, stocking, warehouse assistants<\/p>\n

\u00fe\u00a0 Pharmacy prescription technicians<\/p>\n

\u00fe\u00a0 Information gatherers, researchers, analysts<\/p>\n

\u00fe\u00a0 Journalists, reporters<\/p>\n

\u00fe\u00a0 Pilots<\/p>\n

\u00fe\u00a0 Bartenders<\/p>\n

\u00fe\u00a0 Stock traders<\/p>\n

\u00fe\u00a0 Postal workers<\/p>\n

\u00fe\u00a0 Doctors, anesthesiologists, surgical assistants<\/p>\n

\u00fe\u00a0 Soldiers, guards<\/p>\n

\u00fe\u00a0 Travel agents<\/p>\n

\u00fe\u00a0 Chefs, cooks<\/p>\n

\u00fe\u00a0 Bomb squad assistants<\/p>\n

\u00fe\u00a0 Typists<\/p>\n

\u00fe\u00a0 Switchboard operators<\/p>\n

\u00fe\u00a0 Bowling center pinsetters<\/p>\n

\u00fe\u00a0 Film projectionists<\/p>\n

\u00fe\u00a0 Agriculture assistants<\/p>\n

\u00fe\u00a0 Hotel staff, room service staff<\/p>\n

\u00a7\u00a0 In the mid-term: Focus on providing risk management, business consulting, and capital raise services for ed tech and healthcare tech solutions companies<\/p>\n

\u00a7\u00a0 In the long-term: In descending order of importance, focus on providing risk management, business consulting, and capital raise solutions to \u201cnew\u201d economy industry companies:<\/p>\n

\u00fe\u00a0 Construction companies servicing transportation sector rebuild of roads and highways, waterways, and airport infrastructure<\/p>\n

\u00fe\u00a0 \u201cGreen\u201d energy wind, solar, water reduced carbon footprint non-fossil fuel companies<\/p>\n

\u00fe\u00a0 Plant-based health, beauty, food companies<\/td>\n<\/tr>\n

Direct payments<\/td>\n\u00a7\u00a0 Single filers earning an adjusted gross income (AGI) up to $75,000 and head of household filers up to $112,500 AGI will receive $1.400 each and married couple joint filers up to $15,000 AGI will receive $2,800; these taxpayers will also receive $1,400 for each dependent<\/p>\n

\u00a7\u00a0 The phase out for single filers is 28% or $280 per $1,000 till a cap of $80,000 AGI and head of household till $120,000 AGI and married couple filers till $160,000 AGI and 42% or $420 per $1,000 for married couple filers with 1 dependent; thereafter $0 after each cap level<\/td>\n

\u00a7\u00a0 Based on previous direct payments use:<\/p>\n

\u00fe\u00a0 15% of recipients spend it all<\/p>\n

\u00fe\u00a0 33% of recipients\u00a0 save it all<\/p>\n

\u00fe\u00a0 48% of recipients to pay down debt<\/td>\n

 <\/td>\n<\/tr>\n
Child tax credit<\/td>\n\u00a7\u00a0 Increase from $2,000 per child to:<\/p>\n

\u00fe\u00a0 $3,600 per child under<\/td>\n

 <\/td>\n <\/td>\n<\/tr>\n
COVID-19 vaccine manufacturing and distribution<\/p>\n

$20 billion<\/p>\n

COVID-19 testing, contact tracing<\/p>\n

$50 billion<\/td>\n

 <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Rental and utility assistance<\/p>\n

$25 billion<\/p>\n

Mortgage aid<\/p>\n

$10 billion<\/td>\n

 <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Relief to State, local, tribal governments<\/p>\n

$350 billion<\/td>\n

 <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
K-12 schools<\/p>\n

$120 billion<\/td>\n

 <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
SNAP\/Supplemental Nutrition Assistance Program<\/p>\n

15% boost to benefits through Sep<\/td>\n

 <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Expansion of subsidies and provisions for Obamacare<\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Aid to restaurants<\/p>\n

$30 billion<\/td>\n

 <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
Employee retention credit<\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>","protected":false},"excerpt":{"rendered":"

The Senate-amended $1.9 trillion massive stimulus package aka the \u201cAmerican Rescue Plan\u201d (ARP) was narrowly passed by the House on Wed 3\/10\/2021 on a strictly […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[90],"tags":[],"ppma_author":[386],"class_list":["post-4540","post","type-post","status-publish","format-standard","hentry","category-business-planning","author-research-team"],"acf":[],"authors":[{"term_id":386,"user_id":0,"is_guest":1,"slug":"research-team","display_name":"Research Team","avatar_url":{"url":"https:\/\/lions.financial\/wp-content\/uploads\/2018\/12\/cropped-LIons-Assurance-Financial-Logo-Favicon.png","url2x":"https:\/\/lions.financial\/wp-content\/uploads\/2018\/12\/cropped-LIons-Assurance-Financial-Logo-Favicon.png"},"author_category":"","user_url":"","last_name":"","first_name":"","job_title":"","description":""}],"_links":{"self":[{"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/posts\/4540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/comments?post=4540"}],"version-history":[{"count":1,"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/posts\/4540\/revisions"}],"predecessor-version":[{"id":4541,"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/posts\/4540\/revisions\/4541"}],"wp:attachment":[{"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/media?parent=4540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/categories?post=4540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/tags?post=4540"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/lions.financial\/hi\/wp-json\/wp\/v2\/ppma_author?post=4540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}