Tag: american rescue plan
Joe Biden

How Biden’s Rescue Plan Saved Six Million Small Businesses In 2021

Nearly one year ago, President Joe Biden muscled his landmark pandemic stimulus legislation through a Senate with a razor-thin Democratic majority, despite unanimous Republican opposition. The American Rescue Plan Act revitalized the economy and delivered billions of dollars to struggling small businesses, a new report from the nonprofit Invest in America details.

"Today, many small businesses have been able to stay afloat due in part to the aid delivered through the ARP," Awesta Sarkash, government affairs director of the nonprofit Small Business Majority, said in a statement provided to the American Independent Foundation. "These targeted programs bolstered small businesses during difficult times and provided them with the funding they needed to persevere."

The American Rescue Plan, which became law in March 2021 and allocated $1.9 trillion in federal funding for stimulus checks, unemployment payments, child tax credits, local emergency funding, and more, came at a pivotal time for small businesses, advocates said.

In February of last year, three out of 10 small businesses reported they wouldn't be able to survive the next three months without immediate grant assistance, according to a survey from the Small Business Majority.

The American Rescue Plan also came with critical programs for small business owners like the Paycheck Protection Program, the Restaurant Revitalization Fund, and the Shuttered Venue Operators Grant.

The law allocated an additional $280 billion to the PPP loan program, which sent federally guaranteed, no-fee, forgivable loans to keep small businesses afloat by paying expenses like employee benefits, payroll, mortgage or rent payments, utilities, and COVID-19 safety equipment.

While the program was first created to support small businesses under President Donald Trump as part of the 2020 COVID relief law, the CARES Act, a Washington Post analysis of Small Business Administration data later showed that more than half of the money went to big businesses. Last year, however, 96% of PPP loans went to businesses with 20 or less employees, the Invest in America report shows.

Additionally, the Shuttered Venue Operators Grant sent out $13.4 billion to about 13,000 theaters and other venues last year to make up for their lost income due to closures during the pandemic.

And the Restaurant Revitalization Fund disbursed $28.6 billion to restaurants with the same goal in mind in 2021. By supporting more than 100,000 restaurants, the fund saved 900,000 workers their jobs, the National Restaurant Association estimated.

Of the restaurant grant recipients, 96% said it likely allowed them to stay in business during the pandemic, and 86% said it permitted them to keep or hire back employees who'd otherwise have been out of a job.

"[In the beginning of 2021], we were seeing a lot of small business owners lay off employees, and most small business owners will tell you that their employees are like family, so it was that much more dire," Sarkash told the American Independent Foundation.

When the pandemic first hit in March of 2020, businesses took a huge blow to their revenues, with lockdowns keeping shoppers at home. But the toll was especially pronounced for small businesses, who were not as prepared to shift their services online or find ways to continue serving customers.

"You could own an independently owned bookstore or hardware store or toy store and you had to close, but somebody could go to Walmart to buy groceries and while there, they could buy books, they could buy clothes, they could buy hardware," Kennedy Smith, a researcher with the advocacy organization Institute for Local Self-Reliance, told the American Independent Foundation.

Experts argue that keeping small businesses up and running is vital for the national economy. The Invest in America report links the ample funding provided to small businesses with a historic economic recovery, which some economists estimate happened at a rate eight times faster than after the Great Recession that ended in 2009. In 2021, the economy added 6.6 million jobs and 5.4 million new private businesses.

"During the shutdown, when people were not able to access their local businesses, I think that made them aware that their local businesses in their community had a huge role to play in keeping our economy afloat," Derek Peebles, executive director of the American Independent Business Council, said in a phone call.

Now, as they mark the first anniversary of the American Rescue Plan's passage, small business advocates want to see more action from Biden to support small businesses.

A few recommendations from Smith include comprehensive training programs for new business owners; affordable operating space; child care services for owners and employees; and minority-owned business development programs to close the racial entrepreneurship gap.

"[The American Rescue Plan] at least helps make small businesses whole from the damage they suffered during the pandemic, but it doesn't do a lot to change the overall environment for small business development," Smith said.

Smith and other small business advocates want continued investments in recognition of small businesses' central role in American civic life.

As Chanda Causer, co-executive director of the organization Main Street Alliance, told the American Independent Foundation: "This investment in sustaining those businesses, it's an investment in the next generation. It's an investment in education and civic life, our public systems, our firefighters — without those things our ecosystem starts to fall apart."

Reprinted with permission from American Independent

Resolute Biden Touts Achievements, Promises To Reconnect With Voters

Resolute Biden Touts Achievements, Promises To Reconnect With Voters

Washington (AFP) - Joe Biden sought to reset his presidency in a marathon press conference Wednesday, vowing to reconnect with voters in his second year and touting what he said were his unprecedented successes.

"Can you think of any other president that's done as much in one year?" Biden asked, ticking off the epic struggle against Covid-19 and trillions of dollars in government funding to save the US economy from pandemic fallout.

"I don't think there's been much on any incoming president's plate that's been a bigger menu than the plate I had given to me," the Democrat said. "The fact of the matter is, we got a lot done."

Speaking on the eve of the anniversary of his inauguration on January 20, 2021, Biden held only the second White House press conference of his presidency -- then surprised many by taking questions for almost two full hours.

At various times combative, joking and meandering into thoughtful musings on everything from the workings of Vladimir Putin's mind to Republican opponents, Biden brushed off criticism over his handling of the pandemic and soaring inflation.

Asked about his approval ratings, which have sunk into the low 40 percent area, Biden was curt.

"I don't believe the polls," he said.

Biden did acknowledge missteps in the 12 months since he took over from Donald Trump, saying it had been "a year of challenges."

These included that he "didn't anticipate" the ferocity of Republican obstruction to his agenda in Congress. On Covid testing capabilities, which continue to struggle to meet demand, he said "we should have done it quicker."

Biden likewise said he understood "frustration" over steadily rising prices, which he blamed on Covid-related supply chain issues.

Fighting inflation will be "hard and take a lot of work."

"It's going to be painful for a lot of people," he said, noting that high prices were being felt "at the gas pump, the grocery stores and elsewhere."

Ukraine Warning

On one of the most traumatic episodes of his presidency -- the chaotic and rushed final withdrawal from the 20-year long Afghanistan war -- Biden said flatly: "I make no apologies."

"There was no way to get out of Afghanistan after 29 years easily," he declared.

The press conference, which defied the widely shared image of Biden as shrinking from contact with the media, focused especially heavily on the looming crisis in Ukraine, where the United States is leading Western efforts to find a diplomatic solution to Russia's military posturing on the border.

Biden said he was ready to meet with Putin and bluntly warned the Kremlin leader that an attack on Ukraine would be "a disaster" for Russia.

However, Biden caused confusion when he appeared to suggest that a small-scale attack by the Russians would prompt much less pushback from the West. The White House quickly issued a statement clarifying that what he meant was that any military invasion would prompt a "severe" response, while non-military aggression, like paramilitary attacks, would be met with a "reciprocal" response.

'Getting Out More Often'

With a State of the Union speech to Congress set for March 1, Biden faces a rapidly diminishing period in which he can engineer a strategy to fight off a Republican comeback at midterm congressional elections this November.

Republicans are forecast to crush his party and take control of the legislature. That risks bringing two years of complete obstruction from Congress, likely including threats of impeachment and a slew of aggressive committee probes.

Trump, who continues to perpetuate the lie that he beat Biden in 2020 and seeks to undermine Americans' faith in their election system, is eyeing a possible attempt at another run at the White House in 2024.

Biden confirmed he wants to run for reelection with Kamala Harris as his vice president again. And he said that while Democrats proved unable to use their razor-thin congressional majority to pass two big priorities -- the Build Back Better social spending bill and election law reforms -- they could instead settle for passing "big chunks" of the failed legislation.

Above all, Biden emphasized his desire to leave the confines of the White House after a year featuring a decidedly light travel schedule.

"Number one: I am getting out of this place more often. I am going to go out and talk to the public," he said.

"I find myself in a situation where I don't get a chance to look people in the eye, both because of Covid and the situation in Washington," he said, describing how he wanted to "connect with people, let them take a measure of my sincerity."

Massive December Job Growth Offers More Evidence Of 'Biden Boom'

Massive December Job Growth Offers More Evidence Of 'Biden Boom'

The economy added 807,000 private-sector jobs in December, more than double what economists had forecasted, providing more grist for claims that President Joe Biden's American Rescue Plan is boosting economic recovery.

Economists polled by the Wall Street Journal predicted only modest gains of 375,000 jobs. But the ADP Employment Report, released Wednesday morning by the payroll company, signaled the economy's second-highest private jobs tally since May. Last month, private-sector jobs grew by 534,000.

The White House cheered on the news, pointing to the report as more evidence of a Biden economic boom."December was another month of strong private sector job growth," White House chief of staff Ronald Klain wrote on Twitter. "The American Rescue Plan has bolstered our economy, even in the face of COVID."

Robert J. Shapiro, a columnist for the Washington Monthly who worked as an economics adviser for both the Obama and Clinton administrations, wrote in December that few have noted the "Biden boom," even as Biden has overseen the largest real GDP growth rate in the century. During the first three-quarters of 2021, real GDP increased at almost eight percent annually, compared to an average rate of 2.2 percent growth from 2000 to 2019.

A December report from the Roosevelt Institute found that Biden's signature legislative accomplishment, a $1.9 trillion COVID stimulus bill passed in March called the American Rescue Plan, spurred massive job growth while protecting the economy from the pandemic's worst ill effects.

"We're entering 2022 in a position of a unique economic strength: Six million new jobs — a record number for a new President — have been created since January last," Biden said Monday. "Unemployment is down to 4.2 percent, three years ahead of predictions. New small-business applications are up over 30 percent compared with before the pandemic. And the fastest growth in America in nearly 40 years."

But Republicans continue to hammer Biden on the economy.

"Joe Biden just claimed the U.S. is "entering 2022 in a position of unique economic strength" GOP Chairwoman Ronna McDaniel wrote on Twitter Monday. "The facts: Inflation is highest in 39 years, job growth has stalled, and the supply chain is in crisis."

Some economic experts beg to differ, however. Federal Reserve Chair Jerome Powell, who was nominated by former President Donald Trump, cheered the falling unemployment rate in December, saying, "amid improving labor market conditions and very strong demand for workers, the economy has been making rapid progress toward maximum employment."

Published with permission of The American Independent Foundation.

Biden's COVID-19 Relief Bill Created Millions Of Jobs, Report Confirms

Biden's COVID-19 Relief Bill Created Millions Of Jobs, Report Confirms

A new report from the Roosevelt Institute found that the American Rescue Plan — the $1.9 trillion spending bill passed by Democrats and signed into law by President Joe Biden in March — blunted some of the worst economic effects of COVID-19.

"There are many achievements to celebrate, from millions more jobs and higher wages to greater economic security and increased worker power," the report's authors, Mike Konczal and Emily DiVito, wrote. "And even better, we avoided the worst-case alternative: the weaker, slower recovery that was projected if the American Rescue Plan (ARP) had not passed, and deeper harm to those who've historically been left behind by past recoveries."

The stimulus package pushed growth beyond government predictions across several categories, including employment, wages, and the Gross Domestic Product (GDP), according to the report.

Before the stimulus package was passed, the Congressional Budget Office and the Federal Reserve's Federal Open Market Committee predicted a slow, grinding recovery similar to the one that followed the 2008 economic recession. But after the American Rescue Plan went into effect, unemployment rates fell rapidly with the addition of more than 1.3 million jobs. At present, the U.S. economy is rebounding roughly eight times faster than it did after 2008.

The American Rescue Plan has been especially crucial for younger and lower-income workers. Using data from the Atlanta Federal Reserve, the Roosevelt Institute found that workers aged 16 to 24 saw a 9.7 percent wage increase, while the bottom quarter of wage-earners saw a 5.1 percent increase — even when accounting for inflation.

The American Rescue Plan has also benefited American workers more broadly. According to
Arindrajit Dube, a professor of economics at the University of Massachusetts-Amherst, the bottom 70 percent of workers have seen "real wage growth" over the past two years. Given that U.S. wages have remained stagnant for decades, this represents a significant shift in favor of American workers. From 1964 to 2018, the average American hourly wage increased by just two dollars, adjusted for inflation — a paltry 10 percent raise over the course of 54 years.

Other benefits have accrued to the bottom of the economic pyramid.

The Roosevelt Institute's analysis found that, in large part because of the American Rescue Plan, the wealth of the bottom 50 percent of households has grown 63 percent from pre-pandemic levels. Now, the bottom half of Americans collectively own $3 trillion.

Despite these wins for American workers, staggering levels of wealth inequality persist. The wealthiest one percent controls more than $42 trillion, according to the Federal Reserve. Still, the American Rescue Plan has given economic relief to millions of U.S. households, many of whom were struggling long before the COVID-19 pandemic began. In 2018, 40 percent of Americans said they would struggle to cover an unexpected $400 expense, the Federal Reserve found.

As a result of this newfound economic security, workers are now better positioned to find new and better jobs, according to the Roosevelt Institute's report. The authors point to markers of worker mobility, which are at historic highs. They also argued that workers now have more leverage to fight for better working conditions, with nearly 1,000 strikes and labor actions taking place this year. And data show that workers largely support this resurgent labor movement: fully 68 percent of Americans say they approve of unions, the largest share since 1965.

The report also notes that, according to the International Monetary Fund, the American economy is expected to grow by nearly 8% between 2020 and 2022. This far outpaces the economic growth rates of comparable countries such as Canada, Germany, Japan, and Italy. It even outpaces the IMF's earlier projections for the United States, which had GDP increasing by less than 2% over the same time period.

This sharp uptick in U.S. economic growth is "a direct effect" of the American Rescue Plan, according to the Roosevelt Institute report.

The United States still faces very real challenges, including new coronavirus variants, supply chain issues, and "surprising inflation," the report's authors write. But overall, they argue, the American Rescue Plan's successes "deserve a central place in the story of this recovery. Everything, from rapid job growth on down, was a choice based on prioritizing full employment. That was the right decision."

Published with permission of The American Independent Foundation.