With a lot of talk about the $2 Trillion Aid Package in the US, Deutsche Welle has put together a list of other aid packages from around the world. While it may be tempting to compare the amounts that each country is contributing to their economies and citizens, one must also keep in mind that the virus is affecting each country different, and the population of each varies.
First is Germany, which has approved a stimulus package worth 750 billion Euros ($814 billion), making it the first time the German government has taken on new debt since 2013. This includes 600 billion Euros for business loans and investments, and 156 billion euros in debt to finance higher social spending.
France has put out a 45 billion euro aid package for businesses and workers, with more yet to come. France's national debt will exceed 100% of their GDP in 2020, which is far above the EU guideline of 60%.
The European Commission has suspended debt and deficit requirements for members, helping less economically-stable countries like Italy to fight the virus. the European Central Bank also announced the "Pandemic Emergency Purchase Program", a bond-buying scheme worth 750 Billion Euros to provide EU member states with liquidity.
Lastly, Mainland China has yet to fight the virus economically as hard as it did during the 2008 crisis or their slowing economy in 2015. They have increased available loans to banks by 500 billion CNY ($71 billion), along with cutting interest rates for banks and large organizations.
Do you think that these stimulus packages and aid will be enough to support those heavily affected by virus? Will they be enough to get the economies of the world going again?
1 comment:
I don't think any stimulus package of any kind or amount in any country will be enough to help an economy return to its fullest potential. They can definitely help to the point where it will stimulate the economy, but there is still uncertainty about how long it will take or even how long the virus will still be affecting these countries. I agree that it is hard to compare different countries because of the population and the different ways they are being affected, but the US's huge package mostly has to do with the fact that we have one of the strongest economies in the world, therefore we have a lot to make up for and a president that primarily focuses on economics.
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