( Washington, D.C., 5th June 2020) As the United States fell into social turmoil, US President Trump still has more difficult problems to solve, including the bailout funds of US$1.6 trillion (about 6.8 trillion ringgit).
In order to combat the economic impact of the coronary disease epidemic, the United States Congress approved the largest economic bailout measure in history at the end of March. Now, nine weeks later, the direct bailout funds aimed at maintaining the normal operation of the economy are nearly exhausted.
The US Congress recently passed the "Care Act" (CARES Act), which is the "Coronavirus Assistance, Relief and Economic Security Act", which includes direct assistance of 1.2 trillion US dollars, hoping to expand unemployment relief, exempt some corporate loans, and provide cash to Family, hospital, cities and states.
Congress added another $400 billion for small businesses and hospitals in April to help them through the epidemic.
According to official US data and Federal Budget Committee (CRFB) data, of the total aid of 1.6 trillion US dollars, approximately 1.12 trillion US dollars have been issued, accounting for up to 70%. CRFB is an independent non-profit organization composed of two parties.
Ernie Tedeschi, an analyst at investment bank Evercore ISI and a former economist at the Treasury Department of Obama, said: "This bail-out fund is consumed very quickly, far faster than commonly expected and past experience, which is The credit goes to the authorities."
Direct cash assistance is only one way to bail out spending, and some economists believe that it is the most effective because it can compensate for the stagnation of economic activity caused by "maintaining social distance measures."
Tadeci said: "We are now enjoying most of the benefits of this bail-out measure. Almost all funds have been committed to disbursement, most of which have been released." In fact, the speed and effect of bailout funds have always been the focus of outside attention. The two parties in the US Congress are still struggling about the scale of the bail-out plan. After all, this involves consideration of the speed of the government’s loosening of anti-epidemic measures, the extent of pneumonia virus spread, and the progress of vaccine research and development.
The Democratic-led House of Representatives approved a new economic relief plan of 3.5 trillion U.S. dollars in May, including increasing social welfare expenditures, distributing more cash to the public and subsidizing local governments. But the case still needs to be approved by the Republican-controlled Senate.
Republican lawmakers and White House officials said that more bailout programs may be necessary, but they must evaluate the effectiveness of the current bailout measures before making a decision. Some White House advisers also expressed concern about the expansion of the fiscal deficit.
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