Covid’s Economic Scars, Tax-Hike Bet, Canada Spending: Eco Day

Welcome to Monday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • Vaccines and crisis stimulus may be fueling a faster recovery than many anticipated, but the legacies of stunted education, the destruction of jobs, war-era levels of debt and widening inequalities between races, genders, generations and geographies will leave lasting scars, most of them in the poorest nations
  • President Joe Biden is asking congressional Democrats to vote for a tax increase that will test a long-held liberal article of faith: that many wealthy Democrats won’t mind paying more in taxes if they can be convinced the money would lead to greater prosperity for everyone
  • Justin Trudeau is set to unveil a vision for Canada’s post-pandemic recovery that will double as an election platform, heavy on new spending and assurances the mounting debt is affordable
  • Argentina is pressing the Paris Club to renegotiate debt with the South American country as separate talks to strike a deal with the International Monetary Fund drag on
  • After fueling its V-shaped recovery by boosting spending on housing and infrastructure, China appears in no rush to drop its investment-led growth model despite calls for it to “rebalance” its economy
    • Separately, Chinese authorities sought to allay fears it wants to topple the dollar as the world’s main reserve currency as Beijing makes bigger strides in creating its own digital yuan. The comments were made at the country’s high-profile Boao Forum for Asia
  • Finally, here’s what’s to look out for in the world economy this week

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