The new Biden administration has many priorities and some ambitious goals. Perhaps none is more immediate than an additional stimulus package to mitigate the deepening impact of a pandemic that has dragged on for nearly a year. After months of declines, initial jobless claims rose again in December to 782,000, which remains above the previous record of 665,000 set in March 2009 (excluding years prior to 1967 when unemployment was measured differently). State legislatures may also implement additional spending cuts in the coming months that could also lead to deleterious effects on unemployment.
With these challenges in mind, it is time to look at the Biden administration’s “American Rescue Plan” to aid in the economic recovery.