Monday, October 19, 2020

The Greater Recession coming on its way

Federal benefits being suspended would create a lot of damage almost as terriying as the economic effects of the coronavirus. We all know that when the Trump administration declares something, almost the opposite will happen. Like in February when Trump declared that the number of cases would soon go close to zero, we saw a huge pandemic that arose. When Vice President Mike Pence insisted in mid-June that there would not be a second wave of the coronavirus, many new cases and deaths arose. When Larry Kudlow, the administration's chief economist declared that the downfall of the economy that the US faced, would be recovered with a "V-Shaped Recovery", we all saw what happened next. Federal benefits such as stimulus checks across the country to the unemployed was greatly beneficial to those people as well as the consumer spending in the country. However, due to these checks, the government expenditure rose about $300 billion which means that the government had to print more money which in turn caused inflation. Two-thirds of business economists in the US expect a recession to begin by the end of 2020. We all have seen and know where the economy of the US is going towards which is downwards. So, what do you guys think would be a better solution by the federal government in order to avoid the recession and cause the US economy to regain its flow? Citation: Krugman, P. (2020, August 6). Coming Next: The Greater Recession. Https://Www.Nytimes.Com/#publisher. https://www.nytimes.com/2020/08/06/opinion/coronavirus-us-recession.html

2 comments:

  1. I disagree, the economy is set up to boom in 2021. There will be no "greater" recession anytime soon in the United States.

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  2. I think that we are already in a recession that we are still working to get out of. I don't believe a new one will start before we are out of the one we are currently in. I think a lot of what is to come will be influenced by the election also. Depending on who gets elected different policies will be put into place that will steer the economy in different directions.

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