Trump administration proposes trillion-dollar economic stimulus
Photo used with permission from The White House/flickr
President Donald Trump attends a meeting concerning the coronavirus outbreak. Over 10,000 Americans have been infected with the disease, prompting widespread business and school closures. As a result of the economic risk posed by these measures, the Trump administration has put forward a trillion-dollar economic stimulus package, the largest since the 2008 financial crisis.
March 19, 2020
In response to the economic tumble caused by the coronavirus outbreak, the Trump administration has proposed a trillion-dollar stimulus package, which would include cash payments of $1000 to every adult in the U.S. and $500 billion in aid to small businesses.
Jeh Vandrevala (‘21), who leads the Investment Club, said that the outcome of this aid package is uncertain.
“By providing loans and providing aid to [businesses], you are, in some ways, allowing them to continue on,” he said. “But are you really forcing them to keep people employed, or are you really putting money in the hands of the business owners?”
Vandrevala added that the proposal to give out money to individuals may be helpful, as “people are going to stop getting paid.”
However, he said there is a significant need to find ways of relieving the economic pressure caused by the lockdown measures to stop the spread of the disease.
“If the economy is in this weak position because of coronavirus, people’s livelihoods will be affected,” he said. “If people are not spending, many business owners will fall into poverty.”
