Can a new $2 trillion bill bring back the US economy to pre pandemic levels.

[Juggy777]

According to Brookings Institute if the US government passes a $2 trillion (stimulus) bill, then there’s a good chance that they can revive the US economy to pre pandemic levels by mid 2021. However will the US government actually approve such a huge stimulus bill?, and what happens if it fails to revive the economy then how will they fix it?. Lastly what do you’ll think about this huge stimulus bill should the US government actually approve it.?

Source:

https://money.yahoo.com/coronavirus-stimulus-a-2-trillion-bill-would-bring-the-us-economy-back-to-prepandemic-path-in-2021-brookings-finds-210605554.html

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[jackg]

It'd be interesting if this becomes the new way governments deal with economic crashes in the future (and a welcomed one).

If they follow that advice and only invest in the people rather than the markets/walls St then they'll do much better for everyone...

[Broly46]

Please make it to pre 1900 economy or even more primitive Stone Age. Inb4 time traveller is real.

[Mauser]

However will the US government actually approve such a huge stimulus bill?, and what happens if it fails to revive the economy then how will they fix it?. Lastly what do you’ll think about this huge stimulus bill should the US government actually approve it.?

I think it all depends on the second corona wave. If the pandemic is getting worse the chances are very high for the government to push such a bill through. But will this stimulus actually work to bring back the economy to pre pandemic levels? I am not sure about this one. With so much money being injected into the economy we will likely see an increase in inflation in the near future. Also the rising levels of debt will likely increase financing cost in the future.

[Cnut237]

I think it all depends on the second corona wave. If the pandemic is getting worse the chances are very high for the government to push such a bill through.

The oncoming second wave doesn't look great. First time around, we had (Northern hemisphere) summer coming, when everyone would be outside and transmission lower. This time around we have winter coming, when people will be spending more time indoors and so higher transmission rates. If we add to this that we've already had one lockdown and governments are reluctant to implement a second because of the economic damage caused by the first, and then we add in the lockdown-fatigue in the general population... everything points to the second wave being worst than the first. I think it's unlikely that governments will have learned any lessons, they're just acting as they did before... it's all about short-term decisions made too late, and about their position in the opinion polls.

(edit for spelling. tsk.)

[Lucius]

I agree that for others who say that everything will depend on how big the second wave of the pandemic will be, and what is currently happening in Europe suggests that the second wave in the number of infected will be even more than ten times more pronounced if judging by current figures. Free money is certainly something that helps in the short term, but the fact is that in the long run it can have quite negative effects on a country's economy.

Although when we talk about the amount, $1.9 trillion is a huge amount of money and no one will just so easily decide to pump that amount into the system unless it is really necessary. Some think (at least according to the article) that it is last moment for such a decision to be made or recovery will be much slower and the results much worse.

[Hydrogen]

High obesity, american diets, could be one key underrated reason for corona virus impacting the united states harder than abroad. Obesity and poor health associated with standardized american diets could guarantee americans remain a higher risk demographic, no matter how much capital is injected into the economy.

Barack Obama passed a $1.4 trillion dollar stimulus bill to counter the 2008 economic crisis. It didn't achieve anywhere near to the quantity of positive results one might expect from such a large sum of money. I think its safe to say $2 trillion won't do anything to fix problems. Lockdowns are the cause of job loss and business being destroyed. Throwing money at lockdowns won't change anything, as long as lockdowns remain in place.

[bocyaj]

Covid 19 not left the US economy too.The comparison of US economy with now and 2008,since we know how it affected the US Economy.But the intresting one is,their is no corona at the time of 2008.If the bill is real,this money will surely had a good impact on the US Economy for sure.But before 2021 it was huge time to get back to original economy.

[davis196]

According to Brookings Institute if the US government passes a $2 trillion (stimulus) bill, then there’s a good chance that they can revive the US economy to pre pandemic levels by mid 2021. However will the US government actually approve such a huge stimulus bill?, and what happens if it fails to revive the economy then how will they fix it?. Lastly what do you’ll think about this huge stimulus bill should the US government actually approve it.?

Source:

https://money.yahoo.com/coronavirus-stimulus-a-2-trillion-bill-would-bring-the-us-economy-back-to-prepandemic-path-in-2021-brookings-finds-210605554.html

The US government will have to approve a new 2 trillion dollar stimulus pack,because there's no other option.
Will such bill revive the US economy on pre-pandemic levels?It depends on how the pandemic will continue to spread inside the USA.If the lockdowns return and small and medium-sized businesses close again,then the answer is no.If the pandemic begins to slow down(which is highly unlikely to happen) and there are no lockdowns,the stimulus pack will revive the US economy.

[Josefjix]

Before more money is pumped into the economy of the USA, let's be focused on what makes the government spend so much. Could it be;
1. Security
2. Health
3. Education

These are some of the basic amenities faced by every government to tackle with alacrity. If the lockdown continues; we might likely not be able to say Yes in this scenario; because the government still has to spend on feeding the affected people with the virus. I'm sure they are professional economic developers to make use of the funds well.

[Upgrade00]

Such a stimulus bill would be useful for businesses and individuals as it help to keep them afloat, but is a band aid solution which does not tackle the recurring problem.
Lockdown due to the virus has weakened the economy adversely, leading to decrease in production and loss of jobs, pumping trillions of dollars into the economy would stimulate spending, but would not improve production or increase employment except the Corona virus issue is tackled directly through a vaccine or herd immunity. Brookings institute is proposing a V-shaped recovery pattern as a result of cash injections, which I do not think is possible, especially with recurring waves of the pandemic spread.

It also begs the question of, where this funds are coming from. Most of this loans would be defaulted or forfeited by the banks, putting more strain on the money flow and further tipping the economy towards inflation. So even if there is an instant rebound in the economy, it would likely be a W-shaped pattern as the effects of excessive government interference in the market begins to reflect later on.

[stompix]

High obesity, american diets, could be one key underrated reason for corona virus impacting the united states harder than abroad. Obesity and poor health associated with standardized american diets could guarantee americans remain a higher risk demographic, no matter how much capital is injected into the economy.

According to Wikipedia if we rank countries by obesity rates and we match it with the death rate we have something like this:

Country Peru Belgium Spain Bolivia Brazil Chile Ecuador USA Mexico UK

Deaths/1M pop 1,012 886 715 715 713 701 692 670 656 637

Obesity rate 19.7 22.1 23.8 20.2 22.1 28 19.9 36.2 28.9 27.8

Obesity might be a factor but it's clearly not a decisive one.


As for the new trillion injected in the economy I think nothing will happen not before the election and not before poeple will be able to estimate the impact of the second wave which is definitely coming in Europe.
Paris is going to enter a night curfrew from Saturday that will last till November, no activity between 9 and 6 o'clock, London might be the next in place and from there probably more restrictions will come in place, it's the cold  and flue season so if transmission continue we're going to see the economy taking another hit. What point would be in printing more money when everything is going downhill, it's better to wait it out and throw the money once there is a way to recover, not with everything shut down.

[Dragonfund]

Please make it to pre 1900 economy or even more primitive Stone Age. Inb4 time traveller is real.

It will still change nothing, there is hyper inflation since early 19 century, except they wish to scrap US dollar and start affresh ( may be a fork of dollar perhaps   ) which will not work in this state. This is side effects 9f centralizelation where sovereignty is given to a group of people to determine what people need and want.
Stimulus will help to revive back some business that has been down since the pandemic locked down, I'm not sure about the economy. I can only look forward the side effects of printing nonsense bill to the economy that will hinder inflation.

[disconnectme]

It is likely going to help but what all these funny economists forget to highlight is that they need to open up the economy also, all these economic downturn was as a result of locking down the economy and all the small businesses that help drive the economy need to close down and some of them are not coming back. 2 Trillion USD is a huge amount but the economy also need t be up and running to have a lasting impact on the economy

[20kevin20]

All I'm hoping for is that another trillion bill won't cause a strong inflation and push the economical situation off a cliff. But doesn't this move increase the national debt even more than it currently is? Last time I checked, it was sitting around $27 trillion..

How long could this keep going on for before it just can't anymore and the economy crashes like never before? Feel free to correct me if I'm wrong, but I feel like these bills are going to be a great facade behind which a monster sits ready for the action ..

[Twinkledoe]

It is likely going to help but what all these funny economists forget to highlight is that they need to open up the economy also, all these economic downturn was as a result of locking down the economy and all the small businesses that help drive the economy need to close down and some of them are not coming back. 2 Trillion USD is a huge amount but the economy also need t be up and running to have a lasting impact on the economy

I do agree with that, releasing their $2T to its people along with the opening of their economy combined will have a very good impact. And I think a lot of businesses are already slowly opening up. If we will get the vaccine by this end of year or early next year, more businesses will be active again.

[wheelz1200]

its a stop gap and a hedge from a recession.  It is not meant as a cure all.  Eventually someone has to pay it back and unfortunately that is usually on the backs of the dying middle class. 

[Polo7]

I think its not all
They can bring more money if they want as the imf boss said thank God there is space in USA to print money "
Trump is intetested about money printing also.

But hey... The situation like that money Don't hurt us all the World need alad lot money now.

[bitsurfer2014]

I suppose that stimulus bill won't bring back the US economy to pre pandemic levels as I think no other country could achieve that feat but it will significantly improve its economic fundamentals.

Additionally, the US must first must have zero infections first or be COVID-19 free before it can start gearing for a better economy comparable to pre pandemic levels.

My conservative estimate would be that it might take at least more than a year before such aspirations could be realized. Imho.

[Wexnident]

According to Brookings Institute if the US government passes a $2 trillion (stimulus) bill, then there’s a good chance that they can revive the US economy to pre pandemic levels by mid 2021. However will the US government actually approve such a huge stimulus bill?, and what happens if it fails to revive the economy then how will they fix it?. Lastly what do you’ll think about this huge stimulus bill should the US government actually approve it.?

Source:

https://money.yahoo.com/coronavirus-stimulus-a-2-trillion-bill-would-bring-the-us-economy-back-to-prepandemic-path-in-2021-brookings-finds-210605554.html

How high of a chance are we looking at here anyway? The US government would not approve of it if the chances aren't even at realistic levels, and if they even do so, a road plan, a proper one with details at the very minute levels are recommended for it to even happen. And even if they ever do this, more problems would crop up in the next few years due to the debt the US has increasing even more than it already has. Who would shoulder that burden then?

And if ever a second wave of the pandemic comes, just how big or how huge would it's effects be? It could even be completely possible to remove the benefits of that $2 trillion stimulus bill that would be released, and by then, everything would have been wasted. Not only did their debt grew, they'd probably have to increase it more just to react to the pandemic.