Unlike Mr Biden, Mr Trump took a top-down approach to stimulating economic and wage growth. He cut taxes for corporations and other businesses as well as lowering the individual tax rates in the income spectrum. His advisors predicted that the measures would significantly accelerate business investment and spark sustained economic recovery, which in turn would increase the incomes of low-income earners and the middle class, even though the direct benefits of the bill were disproportionately focused on the rich.
Sustained investment spikes did not materialize as predicted, but economists generally agree that the cuts helped temporarily support economic and wage growth in the year after their death.
High earners and large corporations today are showing little sign of needing government assistance. Overall, the pandemic recession and recovery have made them richer. Workers who earn higher wages and are able to work remotely are far less likely to be laid off and have recreational savings in store. Companies like Amazon have gained market share as consumer habits have changed.
But at the lower end of the income spectrum – and especially among black and Latin American families – millions of Americans are still feeling the deep pain of the recession. The economy remains nearly 10 million jobs prior to its prepandemic peak, with women of all races and men of skin color struggling the most to get jobs back. The unemployment rate for black men remains above 10 percent.
Data from the Census Household Pulse poll, analyzed by Lena Simet, a senior researcher on poverty and inequality at Human Rights Watch, shows that the ongoing economic hardship of the crisis is centered on low paid workers and those who remain unemployed. Almost half of households earning less than $ 35,000 a year said they defaulted on housing benefit payments. A quarter said they did not have enough to eat.
Mr. Biden’s plan would shower these budgets with government support. Elizabeth Pancotti, the political director of Employ America, a Washington-based group that supports the Biden Plan, has calculated the benefits for several different hypothetical, severely affected Americans under the bill.
For a working single mom of a 3-year-old earning the federal minimum wage – just under $ 16,000 a year – Ms. Pancotti’s estimates would include direct benefits of up to $ 4,775 on the bill. For a family of four with one working parent and one person who remains unemployed due to childcare restrictions, the total benefits could add up to $ 12,460.