The US House of Representatives has approved the stimulus package proposed by US President Joe Biden against the corona crisis worth 1.9 trillion US dollars (around 1.6 trillion euros). The parliamentary chamber, dominated by Biden's Democrats, passed the draft law on Saturday morning (local time) with a narrow majority of 219 to 212 votes. In a next step, the Senate has to give its approval.
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Part of Biden's plan suffered a setback in the run-up: the official responsible for the rules of procedure in this chamber decided that the national minimum wage cannot be increased to US $ 15 per hour as part of the economic stimulus package.
Biden was disappointed, but let it be known that he respected the decision. He called on Congress to quickly adopt its “American rescue plan”. The scope of the measures would correspond to almost ten percent of US economic output.
The Republicans oppose such a large package. Congress only passed an aid package worth around $ 900 billion at the end of December. After the worsening of the pandemic in the US, Congress also approved economic stimulus packages worth almost three trillion dollars last spring. The US government's mountain of debt has grown rapidly since then.
Biden wants to use the package to stimulate the economy and create millions of new jobs. Among other things, it provides for direct payments to private households, financing measures for coronavirus tests and for the distribution of vaccines as well as additional help for the unemployed. Biden and the Democrats are pushing for a hurry because the extended and increased unemployment benefits for millions of Americans will expire on March 14 if the president does not sign the law beforehand. In the Senate, Democrats and Republicans each have 50 seats, while Vice President Kamala Harris – who is also President of the Chamber – can cast the casting vote in the event of a stalemate.
House leader Democrat Nancy Pelosi said Friday she was not interfering in Senate procedural rules. The Democrats would not stop fighting for a minimum wage of $ 15 an hour. It is currently at $ 7.25. In addition, many states have higher limits. According to Pelosis, the measure would mean an income improvement for 27 million of the approximately 330 million Americans. It would lift almost a million people out of poverty.
The negotiations on the US stock exchange are being followed with great interest. Investors hope the package will give the economy a boost.
