Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
What’s in the US’s historic $2.2 trillion coronavirus stimulus package?
Context: The US Senate has unanimously approved a $2.2 trillion economic package to contain the damage caused to the country’s economy due to the novel coronavirus outbreak.
- The package is the largest of its kind in modern American history. It is far bigger than the $800 billion assistance provided in the aftermath of the 2008 financial crisis.
- The package intends to respond to the coronavirus pandemic and provide direct payments and jobless benefits for individuals, money for states and a huge bailout fund for businesses.
Since the outbreak, this is the third occasion when US lawmakers have taken measures to address the economic fallout. On March 6, US President Donald Trump approved an $8.3 billion emergency package that provided free testing for the virus, paid leave, and support for families affected by the pandemic.
Significance and expected outcomes:
- The deal aims at sustaining businesses and workers that have been losing income, as well as enabling the economy to recover once the quarantine orders are lifted.
- The support for companies is aimed towards ensuring that they keep paying wages to their employees through the crisis, despite losing business activity. The deal also provides increased support for workers who have been fired or who have had their remuneration reduced.
- The companies benefitting from the stimulus package will not be able to buy back outstanding stock, and have to maintain employment levels as of March 13, 2020, as far as possible.
Sources: Indian Express.