US, WASHINGTON (ORDO NEWS) — On Friday, Republicans in the Senate are offering Democrats a package announced about $ 1,000 billion in aid to save the US economy affected by the spread of the new Coronavirus.
Senate Majority Leader Mitch McConnell stressed that passage of the text is urgent, while nearly seventy thousand people have spent their work across the United States, according to recent figures for weekly requests for unemployment benefits.
After negotiations and approval in the Senate, the text is supposed to be presented to the House of Representatives where the Democrats constitute the majority, before President Donald Trump signs it.
McConnell explained that the goal is to provide direct and immediate financial assistance to workers, to ensure the stability of the economy, and to protect jobs.
This plan includes an important break to help small businesses and support the “courageous” medical staff.
Democratic House Speaker Nancy Pelosi and Senate Democratic Minority Leader Chuck Schumer commented in a statement, saying that “the first priority is to address the health crisis, and this requires + Marshall Plan + to rebuild our health infrastructure … and make sure that there are ways to detect the disease” And address all those who need it. ”
In their statement to obtain the support of the Democrats, they required guarantees to “protect workers.”
Schumer previously stressed, “We certainly do not want the dollars (which will be pumped into the economy) to go into the pockets of employers and shareholders.”
In addition to this broad plan, the White House decided to postpone the payment of taxes worth 300 billion dollars.
This substantial aid is essential to the American economy, which is likely to contract.
On a steady recovery road –
In the United States, many of the services sector jobs that are paid to their occupants on a daily or weekly basis are in a fragile position while there is no social security similar to that applied in Europe. These workers are the first casualties when the economic situation deteriorates.
The US Department of Labor said Thursday that “the high number of applications (unemployment benefits) can be clearly attributed to the implications of Covid-19,” noting the rise in the number of those who spent their work in the hotel and catering services in particular, as well as in the transportation and storage industry.
Public radio reported, “NPR” that several states witnessed a large flow of requests for unemployment compensation via the Internet, which led to the suspension of websites from operating.
But Trump sought to reassure Americans Thursday, stressing that after the epidemic ended, “the economy will be great.”
Economists also expect a steady recovery, stressing that the US economy was solid before the epidemic.
In fact, last February the unemployment rate was 3.5%, the lowest level in fifty years in the United States, which was expecting a growth rate of more than 2%. It is better than Europe.
The new Corona virus, which was detected in China at the end of 2019, has infected more than 13,600 people and killed 200 patients in the United States, according to recent figures from Johns Hopkins University.
– A fourth chapter, “Enormous.”
The drastic measures taken to stop the spread of the epidemic, from closing bars and restaurants, suspending flights and stopping tourism, have caused many sectors to stagnate.
On Thursday, US Treasury Secretary Stephen Mnuchin refused to confirm the disastrous economic outlook for the second quarter of 2020 after the JPMorgan bank, for example, reported a 14% reduction in gross domestic product. “People make speculation,” Mnuchin said.
However, he believed that the improvement could start in the third quarter, followed by “a massive fourth chapter.”
In response to a question about the reasons for this optimism, while no one knows the duration and severity of the epidemic, the Secretary of the Treasury expressed his confidence in the American Medical Corps.
The Food and Drug Administration, which oversees drug marketing in the United States, is studying the possibility of using chloroquine, a drug designed to treat malaria, which “has led to very encouraging initial results,” the US president said.
With the possibility of using this treatment, the US Treasury Secretary hopes to restore confidence, jobs and consumption.
Mnuchin told Fox Business News that the priority now is to “approve the thousand-billion-dollar recovery plan so that we can pump money into the economy.” He suggested that the unemployment rate could reach 20% if it does not move quickly.
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