People all over the world are aware of the coronavirus pandemic and how the governments are trying to stop this virus. Currently, the world’s some of the largest economies are struggling to cope with various issues. The U.S. government wants to help companies as well as individuals to deal with ongoing situations. The administration of Donald Trump came up with a proposal on how to accomplish this goal.
They want to spend $1 trillion on the stimulus package. It is worth mentioning that, Trump administration proposed to send $500 billion directly to U.S. households.
According to the proposal, that money would come in two installments. Americans will receive the first in the first week of April and the rest of the money will be distributed in the second week of mid-day.
Based on the preliminary information, each person will receive more than $1,000.
There is one big question, how to encourage people to spend the money. Authorities in the U.S. and elsewhere asked people to stay at home and to avoid crowded places. As a result, this is an unusual situation. On the one hand, the government wants to help Americans and on the other hand a lot of places are closed due to coronavirus.
The purpose of cash payments is not only to help people affected by the virus, but also to encourage them to stay at home. This is a win-win situation for everyone as more people will be able to stay at home.
Trump administration and coronavirus
The U.S. has the largest economy in the world. Moreover, this country retains this status for decades. Nevertheless, even for the U.S., coronavirus is a serious problem. The Trump administration should do whatever it takes to support the largest economy around the globe.
Bars as well as restaurants are closed around the country, except for take-out. Moreover, many retail shops are also not working as the government encourages American to practice social distancing. This way the U.S. government wants to contain the virus.
Let’s have a look at another part of the proposal. Out of $1 trillion, the Trump administration wants to spend $300 billion to loan guarantees for small businesses. This is a crucial decision for the businesses as thanks to loans they can keep operating and will resume their daily operations when the pandemic will come to an end.
Owners of small businesses should take into consideration, to qualify for such loans, they should keep paying workers for eight weeks.