oronavirus lockdown has significantly affected the economy of the whole world including the United States. Gross Domestic Product (GDP) had a 32.9% fall rate.
Over 30 million Americans filed for the unemployment checks during the lockdown. The economy of the United States in the year 2020 suffered the biggest blow since “The Great Depression”.
To overcome this loss, the government is taking the necessary steps. A second stimulus package has been introduced which is supposed to be beneficial to get the economy of the US back on track like it was before the coronavirus pandemic.
The first round of stimulus checks has been distributed among the households in March and the second round of checks will be distributed to non-filers who will apply for it.
This will be done by the projection of $2 trillion that the government is supposed to spend.
This project also includes aid to local states and governments, supporting small businesses, unemployment insurances, and some other fiscal supports. These policies are believed to help revive the economy.
As claimed by Brookings, if the government is agreed to spend $2 trillion, then it will increase the level of GDP by 0.2%, 4.0%, and 1.6% in the years 2020, 2021, and 2022, respectively.
Congresswoman Nancy Pelosi, the speaker of the house, and Steven Mnuchin, the treasury secretary have been talking about these policies for weeks leading up to the elections, but due to the highly polarized debates, no one is focusing on the idea and there is less support from the GOP.
Even Donald Trump tweeted that these stimulus packages are wonderful and republicans should be firmly focused on completing this project for the welfare of the American people.
Wendy Edberg who is the director of the “The Hamilton Project” has said that people have lost their jobs during the pandemic and we have to create more jobs. With the passing weeks, the economic problems are peaking and without these kinds of projects, the recovery will be that much more difficult.