As of March 14, there have been over 156,000 confirmed cases of COVID-19 worldwide with over 5,800 deaths.
In the US, over 2,800 people have contracted the virus and 57 have died.
Panic buying is causing shortages of food and household goods.
The Dow Jones rallied Friday after National Emergency declaration.
(ReliableNews.org) – COVID-19 has had a very noticeable impact on the US economy. Wall Street has felt the effects, grocery stores are out of stock on many goods, and plenty of businesses are hurting because they’re getting less foot traffic. President Trump is looking to do something about the economic state of America and help out the average citizen as well.
Trump gave two speeches this past week addressing the virus. The first one, among other actions, called for a temporary travel ban from the EU. Then, on Friday, he declared a national emergency, which enables him to invoke the Stafford Act that could provide tens of billions of dollars of direct aid to state and local governments.
Finding Common Ground
One of the president’s decisions is a payroll tax cut that would last at least until the end of 2020. It would be an expensive policy, which is making it hard for him to get Republican support behind the notion. Democrats seem to be mixed about a payroll tax cut.
Another potential alleviation measure is to provide paid sick leave for employees. President Trump seems to be considering this and it’s also supported by Democrats. Republicans, on the other hand, are concerned about excess spending that could cause more harm than good in the long run.
President Trump also announced on Friday that interest on student loans held by federal government entities would be waived “until further notice.” This could potentially save borrowers thousands of dollars.
It’s always a balancing act in Washington to find the right mix of what’s necessary and what’s too expensive for America to afford at any given moment.
Impact on Consumers
As mentioned previously, many groceries and supermarket chains are out of essentials like toilet paper, milk, and produce. The panic that some people are acting on is creating some difficulties and fueling itself. However, with the various measures being passed, the hope is the economy will settle down before long.
Trump stated that the average person is still in a great spot, saying “the consumer has never been in a better position than they are right now.”
The travel industry has taken a big hit, though. Consumers who have already booked cruises and other travel plans are in a complicated situation when it comes to refunds or other compensations for the virus. Cruise lines are reportedly offering more incentives to keep travelers aboard their ships. It’s unknown whether or not the administration plans any relief for the travel or cruise industry.
Overall, there’s no one single solution to the economic impact that COVID-19 is having on the US economy. That’s why President Trump and Congress are working on multiple measures to effectively combat its effects on the market while also protecting Americans from the impact. There will be much deliberation on what additional steps will be taken, but Trump has already gotten off to a good start.
~Daily News for Busy People!
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