Penn Wharton Budget Model Projects the Economic Effects of President Biden’s $1.9 Trillion COVID Relief Plan

Classified in: Business, Covid-19 virus

PHILADELPHIA, Feb. 3, 2021 /PRNewswire-PRWeb/ — On January 14, 2021, the Biden administration released a $1.9 trillion emergency rescue package to provide economic relief during the ongoing coronavirus pandemic and recession. The Penn Wharton Budget Model (PWBM) at the Wharton School of the University of Pennsylvania today released three briefs analyzing the Biden COVID relief plan, including the budgetary and distributional effects of direct aid and the plan’s overall macroeconomic impact.

PWBM estimates that:

  • Three provisions in the Biden COVID relief plan?direct payments, expanding the Child Tax Credit and expanding the Earned Income Tax Credit?together would cost $595 billion in calendar year 2021.
  • 99 percent of households in the bottom 80 percent of incomes would receive direct aid under the Biden plan. The average benefit for households in the bottom 40 percent of incomes would be over $3,000.
  • In aggregate, 73 percent of the proposed $1,400 relief payments will go directly into household savings, and 27 percent will go toward increased consumption, producing only small stimulative effects.
  • The full $1.9 trillion Biden relief plan would increase GDP in 2021 by 0.6 percent relative to baseline.
  • Over time, additional public debt resulting from the $1.9 trillion in spending would decrease GDP in 2022 by 0.2 percent and in 2040 by 0.3 percent.

For more information, read the full reports: Direct Aid in the Biden COVID Relief Plan: Budgetary and Distributional Effects, Macroeconomic Effects of the $1.9 Trillion Biden COVID Relief Plan and Marginal Propensities to Consume in the 2021 Economy.

Media Inquiries: Contact Wharton Media Relations at [email protected]

About the Penn Wharton Budget Model
PWBM is a nonpartisan, independent applied research organization housed at the Wharton School of the University of Pennsylvania. PWBM works directly with policymakers and staff, serving as an honest broker by providing accurate, accessible, and transparent economic analysis of the fiscal and economic impact of public policy without advocacy. PWBM’s estimates are regularly referenced by policymakers and top news outlets. For more information, visit https://budgetmodel.wharton.upenn.edu/.

About the Wharton School
Founded in 1881 as the world’s first collegiate business school, the Wharton School of the University of Pennsylvania is shaping the future of business by incubating ideas, driving insights, and creating leaders who change the world. With a faculty of more than 235 renowned professors, Wharton has 5,000 undergraduate, MBA, executive MBA and doctoral students. Each year 13,000 professionals from around the world advance their careers through Wharton Executive Education’s individual, company-customized, and online programs. More than 99,000 Wharton alumni form a powerful global network of leaders who transform business every day. For more information, visit http://www.wharton.upenn.edu.

Media Contact

Caroline Pennartz, The Wharton School, 215-898-8036, [email protected]

 

SOURCE The Wharton School

These press releases may also interest you

at 00:15

On January 14, 2021, the Biden administration released a $1.9 trillion emergency rescue package to provide economic relief during the ongoing coronavirus pandemic and recession. The Penn Wharton Budget Model (PWBM) at the Wharton School of the…

at 00:05

Alaska Cargo and Cold Storage, LLC (ACCS) and the State of Alaska recently executed a 55-year lease agreement at Ted Stevens Anchorage International Airport (ANC), marking a major milestone in the development of a climate-controlled warehouse…

at 00:01

The Canadian Association of Medical Radiation Technologists (CAMRT) today announced the publication of “Reducing the Prevalence of MRT Burnout”, a position statement that highlights the important and prevalent issue of burnout within the medical…

at 00:00

BANDAI NAMCO Entertainment Inc. based in Tokyo announced on February 3 that the BANDAI NAMCO Group has been honored with a 6th-place ranking and award by the leading global provider of mobile data and analytics, App Annie, in its “Top Publisher Award…

2 fév 2021

Lenovo Group (HKSE: 992) (PINK SHEETS: LNVGY) today announced record Group revenue in the third quarter of US$17.2 billion, up 22% year-on-year. This was the second consecutive record-breaking quarter, driven by strong growth across all core business…

2 fév 2021

The Propylene Glycol market will register an incremental spend of about USD 1,091.24 million, growing at a CAGR of 3.93% during the five-year forecast period. A targeted strategic approach to Propylene Glycol sourcing can unlock several opportunities…

News published on 3 february 2021 at 00:15 and distributed by: