A big boost! – President Biden plans to sign a series of executive orders on his first day in the White House. At the same time, President-elect Biden has already begun to draw up his emergency stimulus plan. However, it seems that the plan cannot be adopted as it stands, due to a too small majority in the Senate.
An ambitious recovery plan…
Joe Biden announced a major federal stimulus package last week. The plan is divided into two sets of measures: those to help individuals and those for local communities. What we’re interested Crypto Investor in are measures that benefit individuals. Indeed, individuals are likely to invest in cryptos to take advantage of the bullrun and protect themselves against the falling dollar.
The recovery plan contains 4 key measures concerning individuals:
a stimulus cheque of up to $1,400 per person ($465 billion);
an extension of unemployment benefits by $400 per week ($350 billion) ;
various policy changes, including an increase in the minimum wage from $7.5 to $15 per hour ($250 billion) ;
an extension of the tax credit related to the number of children ($120 billion).
With nearly $2 billion for the US economy, this stimulus package is twice as much as the one signed by Barack Obama when he took office.
This stimulus plan was awaited by the markets, which had already reflected it in the performance of the dollar on the Dollar Index. Bitcoin’s lack of reaction to this announcement of a massive printing of greenback confirms the negative correlation between the dollar and Bitcoin. When one appreciates, it is highly likely that the other will depreciate.
… limited by a small majority
This recovery plan contains ambitious but necessary measures. Indeed, the minimum wage, which has not changed for more than 10 years in the United States, and the lack of social security coverage are gradually sinking the middle class into precariousness as a result of the record unemployment rate.
However, the majority in Congress will not be sufficient to pass these measures. The seriousness of the stimulus package requires a qualified majority in the Senate to pass the law, i.e. more than 60 votes out of 100 members of the Senate. Consequently, the overall amount of the package is expected to be reduced in the negotiations.
Political observers are sceptical about Biden’s ability to garner the remaining 10 votes if he does not review his copy. In fact, a $1 trillion stimulus package has already been passed in December, and measures such as raising the minimum wage are highly controversial.