Leading economist and Economics Nobel Prize winner Paul Krugman stated that the United States requires a massive stimulus package to sustain its economy. Economic progress in the country has been severely impacted as a result of the coronavirus pandemic.
Krugman states that the US requires monthly amounts exceeding hundreds of billions of dollars. This comes as a result of an economic downturn in the country, with job and business prospects at record lows throughout.
The sizable amount of relief required due to the inability of the Trump administration to contain the virus throughout the country, Krugman argues. Whereas we failed to provide an exact figure, the City University of New York professor stated that the price would be significantly large.
Paul Krugman is known for his works in the field of economics, with a concentration on both macro and international economics. He received a Nobel Prize in 2008.
Whereas the United States introduced the CARES Act, a $2 trillion package, to support Americans who lost their jobs to the pandemic. The severity of this pandemic has resulted in a large number of corporations going out of business.
Pandemic relief funds provisions have been delayed further after disagreements between Democrats and Republicans. The Democratic Party wished to put through a $2.2 trillion relief package focusing on increased unemployment benefits and state government assistance. The Republican Party called for a package focused on payments towards loans obtained by businesses.
Mitch McConnell, now in his 7th term in the Senate, insisted his foremost act as Majority Leader of the Senate would be to put through a relief package for the country. Krugman, however, states that McConnell may not be in favor of passing a sizable relief package.
Krugman argues that unemployment benefits are integral to rescuing the economy. However, the insistence by Republican officials against such policies has resulted in the delay.
