What will President Biden's plans mean for the American economy and for America's partners

and rivals in trade and business around the world.

You're listening to Money Talks on Economist Radio,

our weekly podcast on the markets, the economy and the world of business.

I'm Simon Long and coming up on today's show, how the EU wants to rebalance the global trading order in the post-Trump world.

We act together with others wherever we can

and we act autonomously wherever we must.

And why, despite a return to economic growth, the Communist Party is busy reigning in China, Inc.

The era of freewheeling expansion for China's massive tech firms appears to be coming to an end.

First, America's new president inherits an unenviable intray. The US economy is in a state of crisis.

The pandemic has already cost the country about as many jobs as the global financial crisis did a decade ago, and it's far from over.

I'd like to talk to you about our way forward. A two-step plan of rescue and recovery.

Last week, Joe Biden unveiled a bold 1.9 trillion dollar package, larger than anything that was announced in the wake of the financial crisis.

Direct cash payments, extended unemployment insurance, rent relief, food assistance, keeping

essential frontline workers on the job, aid to small businesses.

These are the key elements to the American Rescue Plan.

The task ahead is to ensure that that money will stimulate the economy.

Some economists are encouraged by the plans, revising upwards their expectations of American growth for 2021 and beyond.

But others argue such large public spending could come at too higher cost.

The emergency stimulus that's taken place already is about 3.9 trillion.

So what he is proposing is to add about 50% to what's been done already.

Henry Kerr is our economics editor.

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