Reading Time: 3 minutes
Los Angeles, CA — On Thursday, Joe Biden unveiled his coronavirus plan that has been dubbed the “American Rescue Plan.” It calls for nearly $2 trillion in spending which includes sending more money to Americans and huge amounts on various big government initiatives.
The plan would put billions of dollars back into the hands of Americans, but also billions back into local government support and various socialist programs. Another part of the plan would raise the minimum wage to $15 per hour.
We knew the proposal was coming and will no doubt be quickly passed by Congress, as Joe Biden has asked for them to do. The Left is excited about the plan, which is the first of two promised, while the Right is skeptical. Who is most excited may surprise you.
In an article on Friday, the South China Morning Post said that China appears to be thrilled at the aspect of the new bill passing. The People’s Bank of China (PBOC) said that they were closely monitoring the situation as it would most likely increase demand for Chinese products.
The PBOC said it was closely monitoring liquidity as China has been the beneficiary of an influx of cash since the beginning of the pandemic. China’s bond yield rates are much higher than most and they are concerned that money could potentially flow out of the country in specific circumstances. The PBOC is focusing on a mission to keep that money in the Chinese market.
The article goes on to say that Chinese exports rose significantly in December and that after the bill passes they would expect that to rise even more. So while Biden has dubbed the plan the American Rescue Plan, it looks like it’s much more likely to be a Chinese stimulus package.
It does little to encourage the growth of the US economy, as calls for increased minimum wage will result in higher prices for US consumer goods. As prices rise, many consumers will opt for cheaper products to help aid in coping with the additional expense. This benefits the Chinese greatly.
Such a move will also continue to negatively affect the US trade deficit, as higher prices will slow the purchase of US goods abroad. This will lead to other nations becoming more dependent on alternative sources for items. Many will seek these from China.
China looks to benefit the most from the American Rescue Plan. Was Biden’s plan to help Americans, or help his Chinese friends?
Democrats impeached President Trump for the second time in just over one year on Wednesday. They issued one charge, which was inciting insurrection against the US Government. They completely ignore the statements of Trump, which many Democrats and others have used in the past. The Left continues to push an agenda against Trump supporters, labeling them all as supporters of the KKK, White supremacists, and supporters of the Capitol violence.
JD Washington is the Editor-in-Chief at The Liberty Loft and host of The JD Washington Show. Be sure to subscribe to The Liberty Loft’s daily newsletter. If you enjoy our content, please consider donating to support The Liberty Loft so we can continue to deliver great content.