Just in late February of this year, Trump administration stated that it is planning to spend roughly 2.5 billion dollars in an effort to battle Covid-19. And then just over a 45 days later, the president signed off on a spending that is amounting to 1000x more than what is initially planned. How much if you asked – it is only at 2.35 trillion dollars. That amount though does not include the efforts exerted by the Federal Reserve, which are more difficult to measure but may likely past the 4 trillion dollars mark.
All that being said, the US government has spent over 6 trillion dollars to halt economic downturn brought by the outbreak. This move seems to help in calming stock market investors but might not suffice in keeping the economy up on its feet.
If you are going to combine the measures taken by the Fed and the congress and also, account how these two interacted, the national response of America towards Covid-19 represents more than ¼ of its economic output.
Bold Move to Save the Economy
While this makes it quite challenging to get hurtiglån på dagen, the government is doing the best that it could to promote and encourage individuals to push through with their small business ideas. Considering that everything the government studied to get a ballpark figure of GDP, pensions and military wages, record sales, high school sports participation, toll booth returns on local highways, sewage collection receipts, manufactured home shipments and so forth. There are approximately 2500 measurements of it and Covid-19 response may easily buy everything they are representing for more than 90 days.
There are actually three stages of congressional stimulus and they are enumerated in the following:
- There is 8.3 billion dollars in response to the Trump’s request of 2.5 billion dollars
- 192 billion dollars are intended for act extending the paid leave and lastly,
- Around 2.15 trillion dollars for Cares Act
After adjusting the congressional response for how big the US economy is, it has been noted that the big part of congressional stimulus was the 10th largest in the world by proportion.
In reality, Federal Reserve is doing everything that they could in propping up the economy than what the Congress is, but then again its contribution is quite difficult to measure. There have been a number of Fed interventions that haven’t stated limit and none of it is government spending in traditional sense.