The Impact of the American Rescue Plan on the Economy and Business: Lesser Known Facts (Completed)

The American Rescue Plan Act, which President Biden signed in March 2021, is expected to provide help to tens of millions of people, reduce high levels of hardship, help school districts address student learning loss, and bolster the economy.

The economy remains weak, the jobs recovery has lost momentum, and there are 9.5 million fewer jobs than in February of 2020. It is projected that the economy won’t return to its full potential until 2025. The Congressional Budget Office projects the number of people employed won’t return to pre-pandemic levels until 2024; and unemployment won’t fall below 4 percent until 2026.

The American Rescue Plan Act is intended to help reduce hardship and begin to set the stage for a stronger and more equitable recovery. However, the plan also has its critics. Some foreign allies have stated:
“The newly launched $1.9 trillion rescue plan will largely be funded with a new round of money printing. It will inevitably result in massive liquidity and inflation. US critics of the legislation argue that it will pour petrol on an economic recovery already showing signs of burning more brightly, risking a resurgence in inflation.

U.S. proponents have countered that the aid is needed to stabilize America and the long-term recovery of the economy will be years in the making. While several of the provisions in the American Rescue Plan are targeted toward the pandemic (like the extended unemployment insurance benefits), other aspects, like the expanded Child Tax Credit, are unrelated and not well targeted toward the pandemic. Overall, about $850 billion is directed to individuals while about $65 billion is directed to businesses. This allocation will have a dramatic impact on the U.S. ability to build a strategic economic recovery.

Who Should Attend
Business owners and executives, Finance, accounting and tax professionals, Economic professionals, Legal professionals, Lobbyists, and Board of Directors.

Topics Covered

• Focus on various components of the Act
• Examine how they will impact American households and businesses
• Focus on the lesser known aspects of the bill that will have a significant impact on the U.S. economy

Learning Objectives

• Identify each component section of the bill's funding and understand its intended use
• Identify the areas of the bill focused on COVID-19 relief, Individuals and Businesses separately
• Recognize how to evaluate the potential impact of various sections of the bill's funding on U.S. businesses and the overall COVID recovery
• Identify lesser known components of the bill and the expected impact of the funding including amounts allocated to Education, the Pandemic response and health, Transportation and Agriculture
• Recognize how to examine the lesser known aspects of the bill that could impact business recovery

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Economics (2 hours)

Program Prerequisites
None

Advance Preparation
None