Joe Biden plans to unveil a proposal Thursday to spend $700 billion on American products and research, challenging President Trump’s “America First” agenda with a competing brand of economic nationalism and setting the stage for an election-year showdown over the country’s financial future.
The Biden campaign says his plan for manufacturing and innovation will bring back jobs lost this year and create at least 5 million more with sweeping investments in domestic technology; reduce dependence on foreign countries to supply critical goods; and implement trade and tax policies that empower U.S. workers.
“Biden does not accept the defeatist view that the forces of automation and globalization render us helpless to retain well-paid union jobs and create more of them here in America,” says a 15-page summary. “U.S. manufacturing was the Arsenal of Democracy in World War II and must be part of the Arsenal of American Prosperity today, helping fuel an economic recovery for working families.”
It’s a cash cliff millions of Americans face this summer as the emergency benefits — which lifted U.S. consumer incomes by a record 10.8% in April — expire. The loss of that safety net looms in the weeks ahead, well before a sustained recovery is likely to take hold from the sudden and deep recession brought on by the novel coronavirus. Personal income dropped 4.2% in May, data Friday showed.
The $600 supplement Congress added to weekly unemployment benefits is due to expire July 31.
Without new support, recipients face a substantial loss of income – particularly devastating for those like the Ramirez family who worked in hard-hit sectors like hospitality where new jobs are scarce. During high unemployment and a still-raging pandemic, the end of enhanced jobless benefits could drag on consumer spending, set off a wave of missed rent and mortgage payments and translate to a slower recovery, economists said.
Airbnb co-founder and CEO Brian Chesky told Axios in an interview that global travel may never fully recover, and that he sees a future where people travel much more within their own countries, possibly for longer stays.
Driving the news: “I will go on the record to say that travel will never, ever go back to the way it was pre-COVID; it just won’t,” Chesky told us by Zoom from his home in San Francisco. “There are sometimes months when decades of transformation happen.”
Chesky, who said travel has changed more tectonically than during the Great Recession of 2008, said Airbnb data shows these trends:
“People are not getting on airplanes, they’re not crossing borders, they’re not meaningfully traveling to cities, they’re not traveling for business.”
“They’re getting in cars. They’re traveling to communities that are 200 miles away or less. These are usually very small communities. They’re staying in homes and they’re staying longer.”
Stocks fell for a second day on Thursday following the release of disappointing unemployment data while traders grappled with a rising number of coronavirus cases. The Dow Jones Industrial Average traded 200 points lower, or 0.8%. The S&P 500 slid 0.7% while the Nasdaq Composite dropped 0.8%. An additional 1.48 million Americans filed for unemployment benefits last week, the Labor Department said. Economists polled by Dow Jones expected a print of 1.35 million. This marks the second straight week that U.S. jobless claims data were worse than expected.
“No matter which way you look at it, over a million unemployed is a very bad thing,” said Mike Loewengart, managing director of investment strategy at E-Trade. “It will take some time to unwind the structural damage COVID has caused across the world.”
“While it’s certainly uncomfortable, the everyday investor should be used to ongoing market volatility at this point,” Loewengart said.