The article raises the possibility of more aid packages in the future. Do you think this package will be enough to stimulate the economy or can we expect more like it in the future?
Friday, March 27, 2020
House Passes $2 Trillion Aid Package
As of today, March 27, 2020, the House has voted to pass a $2.2 trillion aid package with the intention of aiding the economy and protecting the healthcare system that is vital during this pandemic. An article by New York Times states that this bill, the largest economic bailout in history, will give direct payments to taxpayers, provide jobless benefits, and give a $500 billion fund to struggling businesses. The jobless aid will include an additional thirteen weeks of enhancements of benefits. Families that makes up to $75,000 can expect $1,200 in direct payment along with an additional $500 per child. There is also an expected $377 billion in loans to businesses including airline companies and a $100 loan to hospitals that are considered to be on the front line of fighting the virus. This aid package is intended to encourage employers to keep their workers on their payroll, while also helping those who have been laid off or are experiencing cuts in wages or hours.
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I think that this package will most definitely soften the blow to the economy but I do not think it is the only one to come if this continues. There may need to be more than one in the future in order to keep up with the economy in order to prevent a prolonged terrible recession.
I think people will see how serious this is because the government passed the largest economic bailout in history. Because of this, people will begin to save, and so I do not believe any more aid will be needed in the future. They might have to implement something to increase consumer confidence, but I do not think that will be by providing more money to workers.
I believe that the impact of this package will vary throughout regions of the country. For example, in places like the South and parts of the mid west, where the cost of living is inexpensive compared to large metropolitan areas, this stimulus package will greatly help many Americans stay on their feet. However, in places like New York and like Los Angeles I fear this stimulus package will not nearly be enough to really have much of an impact on the many citizens who are suffering right now.
I don't think this is going to be enough if this virus is going to last as long as it's expected to. The restrictions and qualifications for the $1,200 seem like they were made by someone who knows nothing about the lower-middle to lower classes. There will most likely be another stimulus package.
In my opinion, I believe that we may need more stimulus packages in the future to further benefit small businesses and industries that will face increasing pressure from this economic downturn. The current economic stimulus package may stimulate some sectors of the economy and economic growth but it may not be enough to pull us out of this economic recession, so we may need more stimulus packages.
I feel like the government will take a huge blow in spending as millions of Americans are filing for unemployment on top of the $1,200 payment, which only qualifies for those making less than a certain amount a year. I believe there will be insufficient funds to satisfy the needs of paycheck to paycheck workers, but this can potentially put us as a country further into debt at an amount we have not seen prior to this event in history.
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