Here is one finance professor's take on the smart way to help businesses and workers struggling under the coronavirus pandemic:
With major cities locked down, all travel canceled, and the global supply chain disrupted, the U.S. economy is likely to experience the largest contraction since the Great Depression. The policy question, then, is not whether the government should intervene, but how.
Besides facilitating compliance with the restrictions, this policy would have two added benefits: 1) it will reduce the financial uncertainty that workers face, containing the surge in precautionary savings, which will compress demand; 2) it will ensure that production capability will remain in place, so that supply can resume as the pandemic subsides.
Read:J.P. Morgan economist’s advice to Congress: Don’t send checks — let the banks quickly compensate businesses so they’ll hang on to workers So if a small restaurant that last year made $100,000 in profits is experiencing a 90% drop in revenues, it would receive a check from the IRS of $18,900 . The same logic would apply for the personal income of all self-employed.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Joe Biden pushes Trump for worker protections in coronavirus bailoutBiden, in an attempt to draw a contrast with Trump's more combative style, spoke about the impact the pandemic is having on people across the country
Leer más »
5 ways to help other people during the coronavirus crisis while you're stuck insideIf you're feeling helpless during the pandemic, there are easy ways to help others.
Leer más »
The UK has gone into coronavirus lockdown. Here's how the new rules will work - Business InsiderHere's how the UK's new coronavirus lockdown will work and how it will be enforced.
Leer más »
What you need to know about the coronavirus right nowHere's what you need to know about the coronavirus right now:
Leer más »
Freemasons call on the public to join centuries-old tradition to remind them they are 'not alone' amid coronavirus outbreakThe 'Nine O'Clock Toast' will also be held to honor frontline workers combating the coronavirus pandemic.
Leer más »
How you can help during the coronavirus outbreakAs the coronavirus outbreak upends many aspects of daily life, we’ve compiled a list of ways you can help others.
Leer más »