From the bright guys at Breitbart…
President Biden signed his covid spending bill—we refuse to call anything this pork laden a “relief bill”—into law on Thursday afternoon, a day ahead of schedule. Exactly why he decided to sign it ahead of time is not clear. But what is clear is that the stock market liked the notion of Biden unloosing a sluice of cash into the economy.
The S&P hit a record high on Thursday. The Nasdaq, heavy with tech stocks that have boomed during the pandemic, rose another 2.5 percent. Not surprisingly, information technology was the best performing sector of the day, followed by consumer discretionary. This gives you an indication of where investors think the tide will bring all of those Biden bucks. Those were also the top sectors in 2020.
Just how much money is flooding out? Republicans have focused their criticism on the money to states and special interests, but the money to households has been neglected. There are the direct stimulus payments, worth $1,400 for every man, woman, and child. Then the refundable child tax credits, worth $3,600. If you are out of work, the federal government will kick in an extra $300 on top of your regular benefits. By our calculations, a family of five in New Jersey could haul in over $92,000 without doing any work whatsoever.
Meanwhile, the economy continues to outperform. Jobless claims fell to 712,000, far lower than expected. And the Labor Department’s Job Openings and Labor Turnover Survey showed openings climbing to 6.9 million, more than expected. This is not an economy screaming out for $1.9 trillion of aid. But that’s now academic because the spending is coming.
Perhaps that’s why Biden signed the bill early. He might have been worried that another day of good news would make the whole thing look too ridiculous.
– Alex Marlow & John Carney
Breitbart News Network