Unemployment Could Soar Without Stimulus

Unemployment Could Soar Without Stimulus

(UnitedVoice.com) – Treasury Secretary Steven Mnuchin warned the Senate that unemployment could spike to 20%. Under very different circumstances caused by economic factors, the Great Recession in 2009 saw 10% unemployment at its highest point. In the Great Depression of the 1930s, unemployment hit 23% at its peak.

Mnuchin’s spokeswoman Monica Crowley said the treasury secretary was not stating an economic forecast when he said 20% unemployment was possible. Instead, he was trying to illustrate an example of what could happen.

This situation is radically different as COVID-19 is rapidly spreading around the globe causing both a humanitarian and an economic crisis. In the US, states have shut down parts of the economy to contain the virus and protect citizens. President Trump and Mnuchin have repeatedly stated that the bill was necessary to help those who are affected by the fast spread of the coronavirus outbreak. Trump said on Tuesday that he wants a check mailed to Americans in two weeks.

What’s in the Proposal?

The Trump administration’s proposal was for Congress to pass a $1 trillion bailout package that includes a check to every American experiencing financial hardship due to the coronavirus outbreak.

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Recently, we shared with you how several Senators on both sides approved of the idea of giving every American a $1,000 check. In addition, Trump has been pushing for a payroll tax cut. Also, a $50 billion bailout is being requested for the airline industry.

On Tuesday, the president said, “We’re going big. We don’t want airlines going out of business. We don’t want people losing their jobs and not having money to live on.”

Thankfully, lawmakers realized the impact on the deficit and that it could also be their last chance to boost the economy and help Americans affected by the outbreak.

By Don Purdum, Freelance Contributor

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