The only country that can get the world economy out of the mire is the United States. The U.S. is the only country that can make the global rollout of an effective new crown vaccine; the rapid action of the Federal Reserve and the Treasury; the largest consumer market stays alive; and the boost that the U.S. economic recovery brings to the world economic recovery itself will start to show its power in June this year. The current round of world economic recession appears distinctly different from the historical post-pandemic period: the previous world epidemic was followed by a narrowing of the gap between rich and poor, but this round has widened; the previous government response was relatively slow, but this time the fiscal response was relatively fast; this time a number of U.S.-based pharmaceutical companies launched effective vaccines relatively fast, etc.
For one thing, the U.S. vaccine is the cure for economic problems. U.S. science and technology, including medicine is the world’s most developed country, when last year’s epidemic world pandemic, put hope in the U.S. scientific and technological community think not only I must be a person, rather than the incompetent WHO hold a trace of fantasy. Last week the CDC said that half of all adults in the United States have been fully vaccinated and 61.6 percent have received at least one dose, and that these vaccines are also effective against the variant virus. The U.S. will soon reach the critical mass needed for herd immunization, after which large U.S. manufacturers will export large quantities of effective vaccines to other countries around the world. The epidemic is the most fundamental cause of the current world recession, and as the vaccine is rolled out, production will gradually resume worldwide and international trade and travel will gradually normalize.
Second, the Federal Reserve and the administration have stepped in with a steady hand to curb the risk of a hard landing. Last March, the Federal Reserve directly cut interest rates by more than a hundred basis points to benchmark interest rates near zero; the Trump administration introduced tax relief and handed out money to the people. The Fed and the government at the time acted as a model for central banks and fiscal authorities around the world, effectively preventing a larger recession. This time, the U.S. response to the economic crisis far exceeds the response to the 08 subprime crisis, more than a year ago the U.S. authorities are still dragging their feet as Bush Jr. did, the world economy is really unthinkable.
The largest irreplaceable consumer market
Third, U.S. economic growth in the second quarter of 2021 will be the highest year-on-year growth rate in history, greatly stimulating the U.S. and the world out of the haze of recession. 2020, the full outbreak of the epidemic in the United States led to shutdown, seriously affecting economic development, the U.S. gross domestic product in the second quarter of last year fell by 31.7% at an annual rate. However, the U.S. economy has massively repaired since the third quarter of last year, with U.S. GDP growing 33.1% at an annualized rate in the third quarter of last year. In the future, if we use the second quarter of this year compared with the same period last year, that will be a huge contrast, but, based on this to prove how Biden can do the economy will be a joke in the future.
Fourth, the strong recovery of the U.S. economy has pulled the world economy rebound. The strong recovery of the U.S. economy began in the three quarters before last year’s U.S. elections, when Trump’s demand for states to return to work and school was met with total resistance in blue states where Democrats were in power, yet the economy still maintained an overall recovery. The United States, as the world’s largest consumer market, has made an irreplaceable pull for the world economy to rebound. In the first four months of this year, the trade volume between China and the United States reached a new high, and China received a trade surplus of 100 billion dollars from the United States, just to name one example.
Fifth, the U.S. and the world economy will be better off if Biden stops his idle hand of the big money spinner. To solve economic problems, different policies should be adopted at different times in which the economy is in, not set in stone. At the beginning of the year, Biden changed Trump’s $900 billion bailout plan for the people, increasing it to $1.9 trillion. He also plans to launch a $2.3 trillion infrastructure program, hundreds of billions of dollars in environmental programs, and fancy socialist good plans such as building housing programs for the so-called poor.
The United States is the consumption of the economy accounted for 70% of the total, early in response to the epidemic no special drugs, no vaccine situation, to give people relief to send money for their consumption is necessary and reasonable from a humane or economic point of view, when the vaccine is generally promoted, the epidemic can be suppressed in the case of infinite big money, only to aggravate inflation, only when stop to have the ability to work but do not work large amount of subsidies, the U.S. unemployment rate will Only when the large subsidies to the working but non-working population are stopped will the U.S. unemployment rate come down and monetary and fiscal policies will be withdrawn.