Joe Biden’s Economic Plan Promises Nearly 19 million New Jobs

05 Apr 2021 · 3rd Party Analysis

WRITTEN BY ThorFX

In Summary

  • Joe Biden talks about his new plan and the improving state of the economy
  • A strong economic rebound is expected as investors position for a reopening

A powerful recovery appears to be in the making for the US as the federal government is working on another big-ticket spending. In combination with a rapid and highly successful vaccine rollout, investors are increasingly hopeful that the economic bounceback could arrive sooner than planned. The strengthening US economy, which added 916,000 new jobs in March, is painting an optimistic outlook, while the market is already positioning for a reopening.

As US growth is picking up, President Joe Biden has set his gaze on his next target. Following the passing of the $1.9tn stimulus bill, Mr. Biden is now crafting a $2.3tn economic plan, aimed at providing funding for the repair of roads, bridges, airports, public transit. Funds will also be allocated to installing more than 500,000 electric-vehicle charging ports and broadband internet access across the states.

The American Jobs Plan, as the President has called it, will be the “largest American jobs investment since World War II.” If signed into law, the plan would lead the US economy further into modernization that, according to many economists, would provide a strong competitive edge on a global scale. “In total, the plan will invest about $2 trillion this decade,” the Fact Sheet on the sweeping plan says, adding “these are investments that leading economists agree will give Americans good jobs now and will pay off for future generations by leaving the country more competitive and our communities stronger.”

Big Plans in the Pipeline

Last week, President Biden stated that the large-scale infrastructure proposal would create as much as 19 million jobs to further advance the US economy, which remains on track to hit the quickest rebound since 1984. In a speech at the White House, Joe Biden laid out his remarks on the current state of the economy. “Independent analysis shows that if we pass this plan the economy will create 19 million jobs,” the comments included. President Biden was referring to a report by Moody’s Analytics, where it’s mentioned that along with the $1.9tn stimulus bill, the American Rescue Plan, the infrastructure plan would create nearly 19 million jobs by 2030. “That’s long-term jobs for pipefitters, healthcare workers, those who work in steel factories and the cutting-edge labs as well,” Mr. Biden said in the White House. “But we still have a long way to go to get our economy back on track after the worst economic and job crisis in nearly a century,” he also mentioned.

According to the report, by early 2023, the US economy will recover the 8 million jobs lost during the pandemic. As the US is set on a trajectory to come out of the coronavirus recession, the Federal Reserve, the Treasury, and the federal government remain committed to providing as much help as needed. The central bank has vowed to leave its monetary policy unchanged as it keeps on buying bonds worth $120bn every month, even if that means rising prices and higher bond yields. Investors are cheering Biden’s programs and are betting on a quick economic recovery as soon as states reopen for business and consumers engage in spending.

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