On Friday, the coronavirus relief bill had been passed by the house as it is going to be providing aid to the Americans who are infected and the ones who would lose jobs due to the outbreak however it is expected that this would not be keeping the broader economy from going into the state of emergency as per the economists.
At a particular point, the things will spill into the economy as there is going to be a social distancing and the economy is going to hurt.
He says that eventually they will be needing to do the broader stimulus which is going to provide the spending of money to a lot of Americans.
Mark Zandi, the biggest economist of Moody Analytics has agreed that he doesn’t think that this is going to be coming close to the forestalling of a recession.
The legislation which had been passed on Friday has expanded the paid and medical sick leave which is going to bolster the unemployment insurance and food stamps and providing a lot more federal funding for the Medicaid. It is also going to require the free testing of coronavirus.
Such kind of support for social safety and is most vulnerable representing the most important first step as per Shambaugh. The broader brush is good he says.
Presently, close to a quarter of the workers in United States most of them being hourly employees at the lower income levels are not earning a paycheck in case they miss their work due to sickness as per the Pew Research. As per this bill, the employers should be providing two weeks of the sick leave paid in case the workers have been quarantined or ill due to the virus.