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The impact of Biden’s stimulus plan on the economy and individuals

Published: Jan. 26, 2021 at 7:20 AM EST
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LEXINGTON, Ky. (WKYT) - Before taking office last week, President Joe Biden announced a $1.9 trillion stimulus plan, the American Rescue Plan. This proposed plan would have many impacts on Americans and the economy. Independent financial advisor Josh Smith of Strategic Wealth Designers joined the newscast to discuss what the plan includes and its potential effects. The plan would include an additional $1,400 to individuals.

“Dependent adults would be included in this round of stimulus money,” Smith says. “We would also see the unemployment benefits increase to $400 a week through September. Biden’s American Rescue Plan also includes raising the minimum wage to $15 an hour. Additionally, we would see increased childcare and child tax credit from the plan.”

The American Rescue Plan is not a done deal, however. Republicans are wary to pass yet another relief bill. Some argue that the stimulus checks won’t be spent as intended. For instance, those that don’t need it could invest or put it in savings, rather than actively spending the money to help boost the economy. Outside, of the stimulus checks, billions of dollars would be allocated to other areas of the economy.

“The plan includes billions going to state and local government aid. We’d also see schools get increased funding,” Smith says. “Another large portion of the bill focuses on increased COVID-19 testing and the COVID-19 vaccine program. What we will likely see is a modified version of the plan passing.”

The plan will need to go through the House and the Senate before being enacted, and there is no definite timeframe on how long that may take. To see additional stories surrounding business and economic news for the Lexington area, visit https://WKYT.com/MoneyMatters and if you have a question for Josh send an email to info@swdgroup.com.

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