New York (CNN Business)Just before the buzzer sounds on 2020, Washington has finally agreed on a $900 billion relief package that avoids driving the US economy off a cliff.
But Uncle Sam’s work rescuing the economy from the worst pandemic in a century is not nearly done. Unemployed Americans, hurting small businesses and state-and-local governments are going to require more help in 2021.
Voters in Georgia’s two Senate runoffs on January 5 will have enormous sway over how much more aid comes from Washington. And that in turn will help shape the strength and sturdiness of the post pandemic recovery
“The races in Georgia are incredibly important,” said Kristina Hooper, chief global market strategist at Invesco. “If we see one or both seats going Republican, it’s going to be harder to get significant stimulus packages from Congress.”
That’s because with Joe Biden in the White House and the federal budget deficit skyrocketing, Republicans are unlikely to back another round of major aid. Even with President Donald Trump at the helm and growth slowing, some members of the GOP were opposed to a sizable stimulus package before the election.
“We’re on the precipice of Republicans returning to fiscal austerity now that there’s a Democrat in the White House,” said Ed Mills, Washington policy analyst at Raymond James. “I find that members of Congress care about the debt and deficit when they’re in the minority.”
Source: The Senate races in Georgia will shape the economic recovery
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