Biden expects to spend $1.9 Trillion as part of his American rescue plan, but where will the money come from?
President Biden has announced his American Rescue Plan only days before his inauguration as America’s 46th President. The $1.9 Trillion bill lays out a $416 billion plan of action to speed up COVID-19 vaccination efforts and to start the reopening of schools during his first 100 days in office. His plan also aims to lift millions out of poverty, reinvest in first-responders, teachers, keep essential front-line workers on the job, and rebuild American industries. Since March, more than 100,000 businesses have closed their doors for good, with Yelp reporting 60% of permanent closures back in September 2020.
But will this rescue plan really rescue Americans? Or will it push the national debt up even more, accelerate inflation, and cause more damage than good? Despite fighting for the $2000 stimulus checks earlier this month during the Georgia run-off elections, he has now scaled back to the original plan of a $600 check and a new promise of a third stimulus check coming in on $1400 – a promise Americans have heard before, that kept them waiting for 9 months.
Another aspect of his plan during his first 100 days in the office includes a national mask mandate, furthering contact tracing efforts, and another possible national lockdown. This comes in response to the newly discovered variant from Europe that is already spreading rapidly in the United States. Another lockdown could push even more businesses into permanent closure, resulting in an increase in unemployment claims that dropped briefly after a vaccine calmed the markets. In addition to this, Biden plans to push for a national electric vehicle initiative, which will likely cause a spike in demand for precious metals such as platinum, palladium, and silver as these are used in catalytic converters. Investors, especially those in retirement or approaching retirement should consider investing in precious metals before demand drives up prices per ounce while also creating a hedge against inevitable inflation. Allegiance Gold has experienced professionals that can tailor to your specific needs and budget, whether investors would like to roll over their existing retirement accounts into a Gold IRA, or to stock up on physical precious metals. Allegiance Gold also has one of the largest selections of physical precious metals to choose from, the option to keep your metals in a highly secured location or to mail them discreetly and directly to you, all while having some of the most competitive prices.
Even with the U.S. already being in tremendous debt, President Joe Biden plans to invest in producing more emergency relief supplies, deploying the national guard to hotspots, and preparing for future pandemics – especially within the tribal communities. On top of that, the plan calls on providing sick leave to 106 million Americans to reduce the spread, which could have a negative impact on small and large businesses with a limited number of employees at this time.
To accomplish the latter, the plan calls for 6 actions that Congress must negotiate:
- Put the requirement back in place and eliminate exemptions for employers with more than 500 and less than 50 employees.
- Provide expanded paid sick, family, and medical leave.
- Expand emergency paid leave to include federal workers.
- Provide a maximum paid leave benefit of $1,400 per week for eligible workers.
- Reimburse employers with less than 500 employees for the cost of this leave.
- Reimburse state and local government for the cost of this leave.
- Extend emergency paid leave measures until September 30, 2021.
The plan is beginning to look more and more like a means to get into further debt with money we neither have or will be able to supply without printing more U.S. dollars. Printing will directly accelerate the rate of inflation and the U.S. currency, which is the current global standard, may soon become worthless. This could motivate world leaders to seriously consider a currency reset, which will affect average Americans without a backup plan. Precious metals have historically served as a hedge against inflation and as a form of insurance in times of economic uncertainty. Retirees will be hit the hardest as they will no longer be able to reenter the workforce and their 401(k), often invested in the stock market, will plummet and result in losses much worse than we saw in the 2008 Financial Crisis. Acting now before these policies and bills are approved under a Biden presidency could save you from suffering when things undoubtedly fall apart. Call or contact an Allegiance Gold representative to discuss how we can protect your financial future or download our extensive report to learn more.