Leaders | The world economy

Joe Biden’s stimulus is a high-stakes gamble for America and the world

It is part of a three-pronged economic experiment

WHEN THE pandemic struck it was natural to fear that the world economy would stay in the doldrums for years. America is defying such pessimism. Having outrun gloomy growth forecasts from last summer, it is adding fiscal rocket fuel to an already fiery economic-policy mix. President Joe Biden’s $1.9trn stimulus bill, which he was poised to sign into law after The Economist went to press, takes to nearly $3trn (14% of pre-crisis GDP) the amount of pandemic-related spending passed since December, and to about $6trn the total paid out since the start of the crisis. On current plans the Federal Reserve and Treasury will also pour some $2.5trn into the banking system this year, and interest rates will stay near zero. For a decade after the global financial crisis of 2007-09 America’s economic policymakers were too timid. Today they are letting rip.

This article appeared in the Leaders section of the print edition under the headline “Biden’s big gamble”

Biden’s big gamble: What a $1.9 trillion stimulus means for the world economy

From the March 13th 2021 edition

Discover stories from this section and more in the list of contents

Explore the edition

More from Leaders

Keir Starmer surrounded by the Eu stars

Sir Keir Starmer should aim higher in his reset with the EU

And he needs to be clearer about what Britain wants

illustration of a world map outlined by a single red electrical cord, with a plug at one end and a socket at the other

To make electricity cheaper and greener, connect the world’s grids

Less than 3% of the world’s power is internationally traded—a huge wasted opportunity


Chinese AI is catching up, posing a dilemma for Donald Trump

The success of cheap Chinese models threatens America’s technological lead


America has an imperial presidency

And in Donald Trump, an imperialist president for the first time in over a century

Tariffs will harm America, not induce a manufacturing rebirth

Donald Trump’s pursuit of tariffs will make the world poorer—and America, too 

How to improve clinical trials

Involving more participants can lead to new medical insights