Federal Reserve chair Jerome H. Powell has recently continued to promote maintaining a stimulus plan for those currently employed and in need of extra assistance. He notes that, at the moment, there is little to on risk of overdoing stimulus plans in order to keep the economy afloat amid an ever evolving pandemic. The various economic stimuli provided by the government over the course of the pandemic have been extremely helpful to those without jobs and as such without proper economic security; however, President Trump's been combating a strong stimulus program fiercely, especially as of late. Citing the United States' currently "strong" economy.
Whether we like it or not, the pandemic's significantly increased the disparity between those of whom have lots of economic stability and security as opposed to those without a single opportunity as it stands. And stimulus is an important method by which, despite its expenses, can provide more opportunities and keep the economy afloat. No matter how much the DOW Jones increases over a given week, it's not exactly a reliable indicator of the strength of our economy and all of whom compose it. The economy's doing great, or so we think, but people are not. And if the DOW Jones were a good indicator of the state of our economy, then as a result of President Trump's most recent statement firmly condemning any sort of stimulus, the DOW Jones went down 300 points immediately. Impacting the entire market additionally:
I find the implications of this rather disturbing as we enter election season and as the pandemic has only been worsening. The stock market's speaking, the people are speaking, and it's only been getting more challenging. I think as these talks unfold over the week (although they've been shut down) something dramatic is going to have to take place before too long.
Source 1: NPR
Source 2: NYT
Source 3: CNBC
Graph: CNBC
4 comments:
I think that Trump's rejection of additional stimulus is more of a political move rather than one with the lower-middle class of the United States taken into consideration. With the election in only a month, President Trump is attacking the democrat party (as he called the request for more stimulus as purely a benefit for democrat states) to gain more republican support. However, this is completely immoral; putting the livelihoods of millions of Americans at risk just to gain political power seems rather inconsiderate. Rather than trying to continue to boost our economy, our money should be put to aiding the citizens of the United States. After all, there is no point in having a strong economy if millions of citizens are at risk of losing their jobs.
I agree with the your idea that there should be more stimulus - not only does it allow small business to function, but it also boosts the economy by allowing people to spend. However, before rushing to pass a stimulus plan, I think lawmakers should look at the faults of the previous stimulus plan and try to make sure that doesn’t happen again. For example, the first stimulus plan was taken advantage of by big corporations that “claimed” they needed the funds. This in turn left many small brick and mortar business that relied on foot traffic without the funds that they actually needed, resulting in a slightly less boosted economy. The DOW Jones, as an indicator of the economy fluctuates a lot - so saying it went down 300 points, relatively speaking, isn’t that significant. As of right now, the average trend over the last couple of months is upward. A dramatic change is inevitable, but with a plan that prevents corruption, not only will everyone get the compensation they deserve, but the economy will also recover at a faster rate.
I agree with you, there should be another stimulus to aid those who worry about how they are going to come up with rent for the month along with it'll boost the economy with people spending that check. And I completely agree with Peter Gadala, Trump's stance on the addition of more stimulus is a power move, similar to the power move he took on being pro life. Trump used to be pro-choice, but he saw it as beneficial to represent himself being pro life in order to gain power. Trump is ignorant and inconsiderate, putting power over the lives of millions who suffer due to the pandemic. How are we going to let a president continue as president who is hungry for power to the point where he doesn't care for our livelihoods?
I agree that Federal government should give out more money to Americans effect from the covid-19. If either family members is suffer from the disease or they are out of work. The economy has not been able to fully recover because the number of cases continue to rise. It seems that more Americans will need help from the government to stay a float.
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