Early Wednesday, Mitch McConnell announced that the White House and Senate leaders struck a $2 trillion deal involving sending checks directly to Americans due to the Coronavirus Pandemic. $250 billion of the $2 trillion are to be set aside for direct payments to individuals, $350 billion for small business loans, $250 billion for unemployment insurance, and $500 billion for distressed companies in need of loans. Full details of the bill are yet to be released, but an estimate shows that approximately 90% of Americans would be eligible for some type of payment. Individuals earning $75,000 adjusted gross income or less are eligible for payments of $1,200, with an additional $500 per child. This payment scales down by income. It is unclear when the checks will be mailed, however, because the bill is still a draft.
1. How do you think this bill could help both individuals and businesses?
2. What could be a possible negative outcome of the stimulus plan?
3. What could this bill do for the country as a whole?
source: https://www.cnn.com/2020/03/25/politics/what-matters-march-25/index.html
A possible negative outcome of the stimulus plan is the small businesses still suffering despite receiving the loans, because they will have to pay back that money eventually and it may be difficult for them to start up again after the epidemic has settled.
ReplyDeleteA negative outcome of the stimulus plan is not being able to cover those who need it the most. Three core groups of those who are disproportionally affected by the coronavirus are small businesses, rural hospitals, and individual contractors. Yet, the $2 trillion does little to nothing to alleviate their situations. Stripped of resources and money, they will inevitable collapse, although they employ and save many people singlehandedly.
ReplyDeleteIn response to question 2, I think the stimulus plan could negatively impact the small businesses and people in poverty that receive loans. It may be difficult to pay back the money for many, as businesses are closed and people have no means of making money. Additionally, because the United States is already 25.3 trillion dollars in debt, loaning out this amount of money places the country in an extremely risky position. Combined with the fact that most businesses aren't going to open until this pandemic is long over, this plan, while helpful, is also pretty dangerous.
ReplyDeleteThis plan could help individuals and businesses by relieving current stress and supporting them so that they hopefully avoid bankruptcy. Also, to continue businesses, small businesses are supposed to receive emergency loans if they're keeping their workers in order to keep them employed. These loans would let more people keep their jobs and business owners would have less stress about laying off their employees. According to the New York Times, the bill will also let companies in distress receive government bailouts but there will have to b an inspector general and board to monitor it. Also, the companies who do bailout will not be able to "engage in stock buybacks while they [receive] government assistance, and for an additional year after that". But I think most importantly, this bill will help hospitals as there is $100 billion set aside for them. Although it's complex and has some flaws, overall it may be what individual people and businesses need right now in order to stay hopeful and it can possibly provide less stress.
ReplyDeleteSource: https://www.nytimes.com/2020/03/25/us/politics/whats-in-coronavirus-stimulus-bill.html
I think this bill has the potential to be a great help to families and small businesses during this time of crisis. And although it seems that it will most likely do a lot of good, the fact is that this bill will not help some of those that would need the help the most. Another negative effect of this bill may be the inability of small businesses to repay the loans after this pandemic is over.
ReplyDeleteThis bill will probably be most helpful for those whose incomes and jobs are put in jeopardy because of the virus, though it may not be enough for them. It will be incredibly difficult to make sure everyone gets the correct payment, and trying to figure that out may lead to problems on its own. It could also lead to shortages of money for government projects later. It is good to see the government taking action to help those the virus has affected.
ReplyDeleteSeeing as the amount of money that is given scales down with income, a possible negative outcome of this plan is the inability to cover those without health insurance. If someone does not make enough money to have health insurance, then even if they survive a COVID-19 infection, they may be left in debt for years trying to pay off excessive medical debt. While it is some aid, a much better program would be to pay for American health care instead of just sending 294 million people a check.
ReplyDeleteIt would definitely help individuals and businesses recover from the corona virus outbreak. Many have loss jobs and businesses are losing unprecedented amounts of money. This bill allows them to recover and not suffer as much from the corona virus outbreak. Still, the bill may not be enough as stated by this article (https://www.nytimes.com/2020/03/22/opinion/coronavirus-recession-stimulus.html). The bill itself is not sufficient to deal with the economic impact. Lots of things need to happen but first we must cure the disease and stop the effects of it as soon as possible.
ReplyDeleteWhile the economic stimulus plan is an extremely exciting step in combating the unemployment epidemic, more support must be given. This package will help millions of Americans to survive and is a lifeline for thousands of businesses, but the plan will be unable to keep up with the implications of this pandemic. Not only are businesses and employees affected by the current lack of business, the effects will be felt for months as the economy slowly recovers. The stimulus package has helped to stabilize the economy; however, because of our severe economic downturn, it is unlikely that civilians will be as encouraged to spend money as before the outbreak. Clearly, the government must not only compensate for a presently slowed economy, but they need to incentivize Americans to support local businesses. If a more comprehensive plan isn't put into place, the social and economic implications of this outbreak will be farther reaching and more profound than ever imagined.
ReplyDeleteI think that the stimulus plan is a great step in the right direction regarding the millions of lives that this affects. However, a one time package is simply not enough to combat the extensive financial impacts that stem from the loss of jobs and lack of support the businesses are able to provide. Furthermore, the effects of this virus are going to be felt in the economy for months to come and there is no way that this one package will be enough to support families.
ReplyDeleteThis bill helps both people and businesses as it gets money in their hands and helps get the economy moving. It is the right step towards the right direction in stimulating the economy. However this alone will not save the economy, and there definitely needs to be more money for the American people. The effects of this are going to be felt in the economy for years to come, and we might not possible regenerate the economy for quite some time.
ReplyDeleteThis bill will definitely help small businesses and individuals that are used to working paycheck to paycheck. Those without steady income are subject to losing several belongings and will find it difficult to dig out of the hole they have been under without work. However, some major negative impacts believed to result from this bill is that if the government is printing more money in order to pay the bill, our country's currency will be inflated. This might result in a corrupt government and failing economy.
ReplyDeleteThe bill could obviously help a lot of individuals and buisnesses. Due to the length of the quarantine, millions of people are having to be without a job for months on end. Many people live pay check to pay check, so having their source of income cut off completely, so abruptly, has had a major effect on their quality of life. Many people are suffering currently, whether it’s figuring out how to pay rent, or how to feed their kids, millions of Americans can not afford to keep up this lifestyle. By providing direct payments for individuals, the government will be helping them stabilize their life again. Although, it may not do much good if the payments do not start soon because the damages will have already been done. The same goes for businesses, many have stopped functioning all together. The stimulus bill could definitely help everyone get back on their feet in the midst of this disaster.
ReplyDeleteIn response to the last question this bill will significantly help America by keeping small business alive and keeping struggling families afloat. Although in the long term this large spending bill could put America into another recession because of our already high debt which could lead to high unemployment causing strain on an already weakened economy due to the pandemic. It seems that this is only the beginning of a long struggle for the American people.
ReplyDeleteThis bill could help individuals greatly by giving them a small amount of capital in this tough time. Many people are losing their jobs and getting fur-lowed because this coronavirus epidemic. The US also needs people to be willing to help boost the economy. The only way to do that is to put money into circulation however, that may not be possible because of the amount of jobs lost. The DOW dropped greatly and were at lows we haven't seen before. This check could help boost the economy and give people who need money a way to obtain it and use it.
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