Biden's Gallup approval rating fell to 50 percent this week. This is the lowest ever, and it is already drawing criticism from Republicans. Rep. Kevin Brady, Texas' top GOP tax writer, stated that the president has been too focused on his $4 trillion spending spree and not enough on the virus.Jason Furman, an ex-top economic advisor to President Barack Obama and close to the White House economic team, stated that the West Wing is well aware of the economic risks from the increase in Covid cases.Furman stated that any problem with a chance of affecting the economic recovery by 5-10 percent is something Furman is concerned about.Although he said that there is no reason to be concerned, the possibility that the Delta variant will "take what was a very rapid recovery and turn it into just another fast recovery" is a real risk.A person who was familiar with discussions between the economic team and the White House confirmed that they are paying attention to the virus but don't consider it a major threat. The person stated that Biden has called on Americans to get vaccinated out of concern for their safety and also for the good of the economy.Biden spoke Monday, after the stock market plunged and investors braced themselves for a rebound of the virus. He said: We cant stop, especially because the Delta variant is more transmissible, and more dangerous.Coronavirus cases are on the rise across the country and have reached their highest point since May. This is due to the spread of the highly contagious variant. This sudden increase has reaffirmed fears about the pandemic, especially as more cases are being reported among children younger than 5 years old who cannot get vaccines and those who have already been fully vaccinated.Schools will be closed if people don't feel safe. Claudia Sahm, an ex-economist at the Federal Reserve, stated that people won't return to work if they don't feel safe. Although the recovery is progressing, it's still fragile.Although it is too early to predict the impact of the rise in cases, any Delta-driven jobs downturn will be most noticeable in blue states. These states have higher levels of vaccinated residents, but are also more willing to take on additional risks as the number of coronavirus cases increases. CBS News polled nearly 4 out of 4 Americans who are fully vaccinated this week. This compares to just half of those who aren't fully vaccinated, or have not had any shots.These same Democratic-led states have the greatest number of jobs to recover, as they had more stringent shutdown orders initially and then reopened slowly. Arindrajit Dube (a labor economist at University of Massachusetts at Amherst) said that roughly 8 million of the 10,000,000 jobs still missing from the economy before the pandemic is over.Accordingly, the most severe effects of a slowdown in job growth will be felt in states with the greatest need. The ripple effects on the macroeconomy from the economic activity these states generate will be even more severe, given the magnitude of their economic activity.If there are large populations in certain areas of the country that have taken Covid seriously throughout the whole time, then you will see a slowing down in recovery.If Delta continues its spread, the economic shock could come as large swathes of Americans still struggle to get on their feet.Inflation has slowed wage growth, especially for low-income workers in hospitality and leisure. According to a Bankrate.com survey, more than one third of Americans have less emergency savings than they did before the pandemic. This is despite the $5 trillion Congress has invested in the economy since March 2020 as stimulus and relief funds.This really shows how important it is to restore jobs, stated Diane Swonk chief economist at Grant Thornton. All the problems that affect low-income households are still there. The clock is running out, and we bought time.Tens of millions of Americans will be affected by the end of social safety net programs. According to Census Bureau data, 3.6 million households believe they will be evicted in the coming months after the nationwide moratorium ends at the end July. Over 12 million Americans still receive some type of jobless benefit, which will be cut or eliminated entirely by Labor Day.42 million student loan borrowers will have to start paying again in October unless the Biden administration acts. 2/3 of those surveyed by Pew Charitable Trusts say that it will be difficult to pay the bill.There is an even greater risk if these and other programs are exhausted simultaneously with a major coronavirus epidemic that causes a decrease in economic spending, a slowdown of hiring, or increased hesitancy in finding work because of the possibility of contracting the virus.According to Gregory Daco, chief U.S. economist at Oxford Economics, if we see a significant surge in the summer and early fall, we will likely see an environment where there isn't any additional fiscal support.In recent months, Congress has been focused on long-term initiatives rather than short-term stimulus. Daco stated that a bipartisan infrastructure plan was being developed and a multitrillion dollar spending package for climate, child care, and health care. Legislators will need to act quickly on urgent issues such as the budget and the debt limit.He said that those are likely to be the main focus. There might be a disconnect between Congress's potential need for additional fiscal stimulus, and Congress's focus on longer-term plans.The Delta variant gives Republicans new ammunition to criticize the multitrillion-dollar spending package that they have long considered an expensive Democratic wishlist. Brady, the House Ways and Means Committee's ranking Republican, stated Tuesday that he hopes the president will stop focusing on his $4 trillion spending spree and instead focus on the economy and coronavirus.Brady stated that he is concerned that Biden has lost sight of the task of defeating the virus and rebuilding America's economy since Day One six months ago. Although the president is trying to make up for this lack of attention now, I worry it will be too late.
