\n<\/div><\/div>\n<\/div>\n<\/div>\n

By Nicole Carroll<\/div><\/div>\n

Expect a rosier economy in 2021 as COVID-19 cases drop, business restrictions loosen and stimulus aid juices growth. But many still struggle due to pandemic issues.<\/span><\/span><\/p>\n<\/div>\n

McLEAN, Va. \u2013 Economists this week shared some remarkably optimistic news: Even with the damage of the pandemic, the economy is expected to boom this year as coronavirus cases drop, business restrictions loosen and COVID-19 relief money juices growth.<\/span><\/span><\/span><\/p>\n

\u201cThe thing is, this was supposed to be a dark winter,\u201d said economy reporter Paul Davidson,<\/strong> who reported the rosier outlook in a recent USA TODAY story. \u201cWe had obviously a really strong recovery in the third quarter. But then things really slowed down and this was expected to be a very rough period, largely because of the COVID surges.<\/span><\/span><\/span><\/p>\n

\u201cSo it almost seemed like magically things have turned around.\u201d<\/span><\/span><\/span><\/p>\n

However, he cautioned in his story, \u201cThat doesn\u2019t mean the crisis will avoid the long-lasting scars experts have feared: shuttered businesses, millions of long-term unemployed Americans and millions of others who have dropped out of the labor force.\u201d<\/span><\/span><\/span><\/p>\n

That\u2019s the rub of the economic recovery. While some Americans have built up savings and are ready to spend, others are in food lines or relying on rent assistance. And this all comes as Congress is debating President Joe Biden\u2019s $1.9 trillion coronavirus relief plan. The House was expected to vote on it Friday. <\/span><\/span><\/span><\/p>\n

To help make sense of the news, I pulled together USA TODAY\u2019s economic experts: financial reporters Davidson, Charisse Jones and Jessica Menton; White House reporter Michael Collins; and economy editor David Brinkerhoff. Here are their insights.<\/span><\/span><\/span><\/p>\n

Bright forecasts fueled by previous coronavirus relief efforts<\/span><\/span><\/span><\/h3>\n
Davidson said due in part to the relief money, including stimulus checks and enhanced unemployment benefits, Americans have saved $1.6 trillion more than what they had before the pandemic.<\/span><\/span><\/span><\/p>\n
\u201cJanuary was not supposed to be a good month for retail sales, but it turned out to be a great month, a 5.3% rise in retail sales. So that really woke everybody up that these effects are actually happening maybe sooner than people thought, that people are spending this money they\u2019ve saved up.\u201d<\/span><\/span><\/span><\/p>\n
And since consumer spending is 70% of the economy, \u201cthat was the biggest thing.\u201d<\/span><\/span><\/span><\/p>\n
The current package most likely will pass, said Collins, \u201cit\u2019s just a matter of what the final vote is and what\u2019s included in it.\u201d<\/span><\/span><\/span><\/p>\n
The legislation includes $1,400 checks for Americans earning $75,000 or less, or $2,800 for couples earning $150,000 or less, plus $1,400 per dependent.<\/span><\/span><\/span><\/p>\n
It also renews the Paycheck Protection Program for small-business loans, provides funding to help schools reopen, extends federal unemployment benefits through the end of August and boosts the amount to $400 per week. It also proposes to raise the federal minimum wage to $15 an hour from $7.25 by 2025.<\/span><\/span><\/span><\/p>\n
Critics say it may go too far, adding money for unrelated social policy initiatives, risking a spike in inflation and swelling the national debt. <\/span><\/span><\/span><\/p>\n
But not everyone is getting the relief they need. Some make too little to file taxes, so they aren\u2019t in the system to receive checks.<\/span><\/span><\/span><\/p>\n
Menton reported that 8 million households haven\u2019t received their $1,200 checks yet from the first round of stimulus payments last April. \u201cExperts are concerned that many of those households may have also been left out of the $600 round of checks that were issued in December,\u201d she said.<\/span><\/span><\/span><\/p>\n
The IRS launched a tool in the spring so that those who don\u2019t file taxes could still get checks. Still, many weren\u2019t aware of those tools or didn\u2019t have the technology to register.<\/span><\/span><\/span><\/p>\n
And that means the low-income and hourly workers who have been hit hard by the pandemic could potentially miss out again on the next round of relief checks. Biden asked the Treasury Department last month to reevaluate its delivery structure for those checks.<\/span><\/span><\/span><\/p>\n
Those who didn\u2019t receive the stimulus money in the first two rounds may qualify to claim the Recovery Rebate Credit on their tax returns. To get that owed money, taxpayers must file a 2020 federal income tax return, including those who don\u2019t normally file taxes.<\/span><\/span><\/span><\/p>\n
Some people have had to drop out of the workforce entirely<\/span><\/span><\/span><\/h3>\n
Meghan Hullinger, 37, of Marlinton, West Virginia, is one of hundreds of thousands of women, particularly Latinas and Black women, pushed out of the workforce over the past year. When the pandemic hit and schools closed, relatives could no longer help out with her four kids, forcing her to leave her job.<\/span><\/span><\/span><\/p>\n
\u201cCOVID took away my village,\u201d Hullinger told national correspondent Romina Ruiz-Goiriena. In May, she started a part-time job where she could work from home some days and is on a wait list for subsidized child care.<\/span><\/span><\/span><\/p>\n
Ruiz-Goiriena asked people around the country how they would spend a $1,400 stimulus check. Their answers: child care, medical costs, utility bills, car loans, small business seed money and furthering their education.<\/span><\/span><\/span><\/p>\n
Tiffany Velez, 38, said she was trying to save money on food to pay off the $1,300 her family owes in gas and electricity. <\/span><\/span><\/span><\/p>\n
\u201cAll I need to do is find a little extra,\u201d Velez told Ruiz-Goiriena. \u201cI keep thinking if we pay something every week they won\u2019t shut the power off.\u201d <\/span><\/span><\/span><\/p>\n
A stimulus check would settle the balance, she said.<\/span><\/span><\/span><\/p>\n
What this all means: Many economists believe we\u2019re in a K-shaped economy, with part of the population doing better, or exceedingly well, while others are falling off a cliff financially. Just look at housing. We\u2019re seeing a rise in housing sales and prices while more people fall behind on their rent or mortgages.<\/span><\/span><\/span><\/p>\n
\u201cIt\u2019s unclear how long this K-shaped economy will last,\u201d Jones said. \u201cThe gap may narrow heading into 2022 or 2023 in the wake of government relief packages, vaccinations and the economy more fully reopening. But it\u2019s hard to predict.<\/span><\/span><\/span><\/p>\n
\u201cIt\u2019s getting better, but it depends on where you sit.\u201d<\/span><\/span><\/span><\/p>\n
Copyright \u00a9 2021, USATODAY.com, USA TODAY, Nicole Carroll, editor-in-chief.<\/span><\/span><\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: marlam<\/p>\n","protected":false},"excerpt":{"rendered":"
By Nicole Carroll Expect a rosier economy in 2021 as COVID-19 cases drop, business restrictions loosen and stimulus aid juices growth. But many still struggle due to pandemic issues. McLEAN, Va. \u2013 Economists this week shared some remarkably optimistic news: Even with the damage of the pandemic, the economy is expected to boom this year as coronavirus cases drop, business restrictions loosen and COVID-19 relief money juices growth. \u201cThe thing is, this was supposed to be a dark winter,\u201d said economy reporter Paul Davidson, who reported the rosier outlook in a recent USA TODAY story. \u201cWe had obviously a really strong recovery in the third quarter. But then things really slowed down and this was expected to be a very rough period, largely because of the COVID surges. \u201cSo it almost seemed like magically things have turned around.\u201d However, he cautioned in his story, \u201cThat doesn\u2019t mean the crisis will avoid the long-lasting scars experts have feared: shuttered businesses, millions of long-term unemployed Americans and millions of others who have dropped out of the labor force.\u201d That\u2019s the rub of the economic recovery. While some Americans have built up savings and are ready to spend, others are in food lines or relying on rent assistance. And this all comes as Congress is debating President Joe Biden\u2019s $1.9 trillion coronavirus relief plan. The House was expected to vote on it Friday. To help make sense of the news, I pulled together USA TODAY\u2019s economic experts: financial reporters Davidson, Charisse Jones and Jessica Menton; White House reporter Michael Collins; and economy editor David Brinkerhoff. Here are their insights. Bright forecasts fueled by previous coronavirus relief efforts Davidson said due in part to the relief money, including stimulus checks and enhanced unemployment benefits, Americans have saved $1.6 trillion more than what they had before the pandemic. \u201cJanuary was not supposed to be a good month for retail sales, but it turned out to be a great month, a 5.3% rise in retail sales. So that really woke everybody up that these effects are actually happening maybe sooner than people thought, that people are spending this money they\u2019ve saved up.\u201d And since consumer spending is 70% of the economy, \u201cthat was the biggest thing.\u201d The current package most likely will pass, said Collins, \u201cit\u2019s just a matter of what the final vote is and what\u2019s included in it.\u201d The legislation includes $1,400 checks for Americans earning $75,000 or less, or $2,800 for couples earning $150,000 or less, plus $1,400 per dependent. It also renews the Paycheck Protection Program for small-business loans, provides funding to help schools reopen, extends federal unemployment benefits through the end of August and boosts the amount to $400 per week. It also proposes to raise the federal minimum wage to $15 an hour from $7.25 by 2025. Critics say it may go too far, adding money for unrelated social policy initiatives, risking a spike in inflation and swelling the national debt. But not everyone is getting the relief they need. Some make too little to file taxes, so they aren\u2019t in the system to receive checks. Menton reported that 8 million households haven\u2019t received their $1,200 checks yet from the first round of stimulus payments last April. \u201cExperts are concerned that many of those households may have also been left out of the $600 round of checks that were issued in December,\u201d she said. The IRS launched a tool in the spring so that those who don\u2019t file taxes could still get checks. Still, many weren\u2019t aware of those tools or didn\u2019t have the technology to register. And that means the low-income and hourly workers who have been hit hard by the pandemic could potentially miss out again on the next round of relief checks. Biden asked the Treasury Department last month to reevaluate its delivery structure for those checks. Those who didn\u2019t receive the stimulus money in the first two rounds may qualify to claim the Recovery Rebate Credit on their tax returns. To get that owed money, taxpayers must file a 2020 federal income tax return, including those who don\u2019t normally file taxes. Some people have had to drop out of the workforce entirely Meghan Hullinger, 37, of Marlinton, West Virginia, is one of hundreds of thousands of women, particularly Latinas and Black women, pushed out of the workforce over the past year. When the pandemic hit and schools closed, relatives could no longer help out with her four kids, forcing her to leave her job. \u201cCOVID took away my village,\u201d Hullinger told national correspondent Romina Ruiz-Goiriena. In May, she started a part-time job where she could work from home some days and is on a wait list for subsidized child care. Ruiz-Goiriena asked people around the country how they would spend a $1,400 stimulus check. Their answers: child care, medical costs, utility bills, car loans, small business seed money and furthering their education. Tiffany Velez, 38, said she was trying to save money on food to pay off the $1,300 her family owes in gas and electricity. \u201cAll I need to do is find a little extra,\u201d Velez told Ruiz-Goiriena. \u201cI keep thinking if we pay something every week they won\u2019t shut the power off.\u201d A stimulus check would settle the balance, she said. What this all means: Many economists believe we\u2019re in a K-shaped economy, with part of the population doing better, or exceedingly well, while others are falling off a cliff financially. Just look at housing. We\u2019re seeing a rise in housing sales and prices while more people fall behind on their rent or mortgages. \u201cIt\u2019s unclear how long this K-shaped economy will last,\u201d Jones said. \u201cThe gap may narrow heading into 2022 or 2023 in the wake of government relief packages, vaccinations and the economy more fully reopening. But it\u2019s hard to predict. \u201cIt\u2019s getting better, but it depends on where you sit.\u201d Copyright \u00a9 2021, USATODAY.com, USA TODAY, Nicole Carroll, editor-in-chief. Go to Source Author: marlam<\/p>\n","protected":false},"author":4,"featured_media":4811,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/4810"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=4810"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/4810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/4811"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=4810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=4810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=4810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}