It will be a return to familiar times in more ways than one when Joe Biden takes office. He will oversee the implementation of a US relief and reinvestment plan again after a severe economic downturn. How well they took the lesson of that effort to be “sheriffs” can determine how quickly the country recovers now.
When President Obama signed the American Recovery and Reinvestment Act on February 17, 2009, he hired Biden to oversee the implementation and operation of the $ 787 billion effort to save the US economy, and to ensure That there was no fraud or waste in the allotment. money.
President Obama said at the time, “We call him Sheriff around the White House, because if you are misusing taxpayer dollars, you have to answer that.”
But experts say it took more than one mistake to ensure the dollar was traded correctly. The recession continued to drag on for a long time without over-spending, which caused economic anguish and opened political doors to austerity measures, which extended the recovery period.
Aamir pointed out that epidemic relief initiatives like the Parole Protection Program have enriched some fraudsters with taxpayer dollars, with officials like Fed Chair Jerome Powell defending the administration’s swift action, arguing that the scope of the economic crisis It was large enough to spread wealth as quickly as possible. Being a top priority, even if it means some bad performers have slipped through the cracks.
A 2009 Moody’s Analytics study found that the increase in food stamps and unemployment insurance programs benefited the government most, as most of those dollars were spent immediately and returned to the economy.
Philip Harvey, a law and economics professor at Rutgers University School of Law, said that focusing on providing income support directly to individuals and families would remove some of these obstacles as well as concerns about misuse of funds by companies .
Money from the Recovery Act, Harvey said, “was not distributed directly to the people. It was all deceitful and slowed it down. If the focus is on the unemployed and marginalized communities, it will get money very quickly. “
Economists say the most difficult task Biden will have to deal with when he takes office is that, if the future remains in the hands of Senate Republicans, there are many apprehensions. Obama was blamed for the surcharge on the Recovery Act, when many economists say the reality is that it was not big enough to get the job done.
Voter dissatisfaction at the slow pace of recovery in the 2010 midterm elections, which swept in a wave of Tea Party conservatives and threw many moments of excitement upside down, said Zandi – about a face that had long-term economic implications.
“I think the most widespread lesson we get from austerity to austerity – very quickly,” he said. “By 2011, it was all-out austerity … that really slowed the economy and was an important reason that recovery was slowing down.”
There is evidence that Biden is turning to similar advisors: Jared Bernstein, Biden’s top economist from 2009 to 2011, is one of the names who has been picked up as a potential cabinet pick, an indication. That Biden can at least return. Parts of the same playbook.
Experts say there are some specific topics on which Biden and his team can learn models and lessons learned in previous retrievals.
Indiana University Public Policy Institute director Tom Guevara said Biden followed a similar strategy to rebuild American manufacturing infrastructure and build more production capacity, resulting in the creation of a public-private consortium in 2012 that was upgraded Dedicated to manufacturing expansion. Later “Manufacturing United States.”
“I think the similarities really go to capacity building,” he said. “They gave capacity and know-how to small and medium-sized manufacturers in particular.”
An important concern for economists is the tight pressure of state and local government finances – a factor that many called the slow and uneven trajectory of the Great Recession recovery.
Providing assistance to states and municipalities has been an important point in the Kovid-19 relief talks, as the president and Congress Republicans have blamed states like New York and California – the Democratic stronghold Kovid-19 for misrepresenting its budget Quickly hit.
Since those early months, coronovirus has burst through extensive swats of the country, covering most of the red-state heart region. Zandi suggests that the possibility and scope of a public health crisis may indicate a backlash among lawgivers.
“The reality is that the epidemic hasn’t subsided,” Zandi said. “Especially now that the epidemic is around the country, and the red states are suffering a lot more than the blue states, perhaps which changes the dynamic.”