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Newly Released Economic Numbers Call Into Question the Need for $1.9T Stimulus Bill

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Newly released numbers show that the economy is coming back strongly and call into question the necessity of the Democrats’ $1.9 trillion stimulus bill.

The Commerce Department reported Thursday the gross domestic product grew at an annual rate of 4.1 percent during the fourth quarter, which was revised upward from an initial estimate of 4 percent, according to Fox News.

“Some expect GDP growth in the current quarter could top 9% and for the year, economists are forecasting GDP growth perhaps as high as 6%. That would be the fastest annual GDP growth since the economy expanded 7.2% in 1984 when Ronald Reagan was president,” the news outlet added.

The strength of the current U.S. economy is also seen in the relatively modest GDP decline of 3.5 percent in 2020, despite the shutdowns and other restrictions saddled on it by the COVID-19 pandemic.

MarketWatch reported that orders for durable goods — products meant to last at least three years — rose 3.4 percent in January, which was higher than the 1 percent forecast by economist surveyed by Dow Jones and The Wall Street Journal.

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“Orders for manufacturers have now returned to precrisis levels, reflecting in large part a major shift among consumers toward the purchase of goods such as new cars, houses, appliances, electronics and so forth,” according to MarketWatch.

This good news comes on top of last week’s report that retail sales rose 5.3 percent and January, well ahead of an expected 1.2 percent jump.

Additionally, home prices posted their biggest increase on record for the November to December time period.

“December’s year-over-year change ranks within the top decile of all reports,” Craig Lazzara, managing director and global head of index investment strategy at S&P Dow Jones Indices, told Fox Business.

Do you support the $1.9 trillion stimulus bill?

“2020’s 10.4 percent gain marks the best performance of housing prices in a calendar year since 2013.”

Given all of the above, why should the United States borrow and/or print an additional $1.9 trillion in stimulus?

If the Biden administration does not raise taxes on businesses or individuals, nor change the pro-growth regulatory climate created by former President Donald Trump, the economy will be primed to continue to take off like it did under Reagan.

The biggest chunk of the $1.9 trillion stimulus would go for $1,400 payments to Americans adults, whether they have a need or not, and an additional $1,400 per eligible dependents, according to MarketWatch.

The price tag of that portion of the bill alone is approximately $422 billion.

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The legislation also includes a $109 billion for a one-year expansion of the child tax credit from $2,000 to $3,000.

The same logic applies: If families are working and earning more or less what they did before COVID, why increase the tax credit?

Another $81.5 billion would go to underfunded pensions. Why should the American taxpayer be on the hook for that? The stock market is at record highs. Mismanagement and overly aggressive shutdowns at the local and state levels are the issues likely driving pension shortfalls.

The stimulus legislation includes another almost $129 billion to help reopen schools, but only about $4 billion of the $68 billion passed by Congress last year for this purpose has been spent.

Perhaps one of the few items that makes sense in the whole Democratic package is continuing to enhance unemployment benefits to those who are still out of work at $400 per week. The cost is about $246 billion.

That benefit should be monitored closely because we don’t want to create a disincentive for people to return to the workforce, but with over 700,000 initial jobless claims last week, there is still a need.

Overall, the federal government can accomplish all that is necessary at this time for a fraction of $1.9 trillion, and that’s the course lawmakers should take.

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Randy DeSoto has written more than 1,000 articles for The Western Journal since he joined the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book "We Hold These Truths" and screenwriter of the political documentary "I Want Your Money."
Randy DeSoto is the senior staff writer for The Western Journal. He wrote and was the assistant producer of the documentary film "I Want Your Money" about the perils of Big Government, comparing the presidencies of Ronald Reagan and Barack Obama. Randy is the author of the book "We Hold These Truths," which addresses how leaders have appealed to beliefs found in the Declaration of Independence at defining moments in our nation's history. He has been published in several political sites and newspapers.

Randy graduated from the United States Military Academy at West Point with a BS in political science and Regent University School of Law with a juris doctorate.
Birthplace
Harrisburg, Pennsylvania
Nationality
American
Honors/Awards
Graduated dean's list from West Point
Education
United States Military Academy at West Point, Regent University School of Law
Books Written
We Hold These Truths
Professional Memberships
Virginia and Pennsylvania state bars
Location
Phoenix, Arizona
Languages Spoken
English
Topics of Expertise
Politics, Entertainment, Faith




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