President Joe Biden‘s $1.9 trillion bailout will be voted on Friday (26) in the House of Representatives, the market is expected to Democratic advantage in the House of Representatives, there is no doubt that the bill will pass, but in the Senate will be a tough battle, the outside world that some of the core provisions may not pass smoothly.
Both the Senate and the House intend to pass the bailout and send the bill to Biden for his signature before the expiration of the key program that concerns millions of unemployed Americans on March 14.
However, the Senate did not accept the bailout as is, and has indicated that the existing stimulus package may face significant changes. The provision that would raise the minimum wage to $15 per hour is the first to go. The provision even within the Democratic Party also appeared different views, some Democratic senators have expressed opposition.
On Thursday, the Senate’s sole arbitrator, who is responsible for interpreting the charter, ruled that Democrats could not include a $15-an-hour minimum wage in the $1.9 trillion bailout.
Meanwhile, the Republican side also has its own version of the minimum wage bill. Some Republican senators have proposed raising the hourly rate to $10 per hour. But the bill contains a provision that requires all employers to verify the identity of employees (E-Verify) to ensure that “legally authorized workers” to raise salaries, which will be strongly opposed by the Democratic side.
Market analysis that the $15 minimum wage has been the focus of controversy between the Democratic and Republican parties, once the stimulus bill is therefore scaled down or delayed again, the financial markets may again face the risk of selling.
Biden’s $1.9 trillion bailout includes $1,400 cash checks for most of the U.S. population, a $400 weekly supplement to unemployment insurance benefits and an expansion of the program until Aug. 29, financial assistance for expanded vaccinations, reopening schools and raising the federal minimum wage to $15 an hour for the next four years.
While economists agree that additional stimulus could provide a strong safety net for workers during the recovery phase of the economy, they disagree that as much as 1.9 percent of the total is needed. But they do not agree that a bailout of up to $1.9 trillion is necessary.