The $2 trillion coronavirus rescue package may only salvage economy for a few months - Business Insider

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The $2 trillion coronavirus rescue package is more than double the size of Obama's stimulus plan — but it may only salvage the economy for a few months

With that chaotic backdrop, lawmakers crafted a relief package that's "throwing out a lot of money in all different directions because it's hard to target the money in a timely way," according to Diane Lim, a former economist at the White House Council of Economic Advisers who now works at the Penn Wharton Budget Model.

"One of the problems in the response last time is that many in Congress, especially Republicans, just grew tired of fiscal stimulus and we stopped it too soon," Jason Furman, Obama's former top economist,Lim said given the scope of the federal response so far, she believed "once this is all over, there will be a larger role of government in this country."

Elements of the relief package triggered significant backlash among progressives. Democratic Rep. Alexandria Ocasio-Cortez of New York on Fridaywho sought emergency federal aid to large businesses to prevent them from going bankrupt. Many states are expected to get economically slammed as a surge of people seek unemployment benefits and tax revenue drops due to lower business activity.

Lim said another round of emergency relief would likely be more "targeted" instead of the fiscal bonanza of the $2 trillion legislation.

 

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