Coronavirus pandemic: Congress response lets down workers, US economy - Business Insider - 0 views
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The US share of global GDP is nearly 15%. If our economy can't stabilize and then recover from the coronavirus pandemic, it will be harder for the world to do so
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it's imperative that Congress write fair, generous legislation to get us through the economic shutdown required to fight the virus
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But that isn't what's happening. Republicans accuse Democrats of not moving fast enough. Democrats accuse Republicans of short-changing American workers and favoring big corporations.
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Under-funding this stimulus will drag the global economy down. And any appearance that corporations are getting a more fair deal than individuals will make people not want to comply. A lack of compliance will drag on the crisis.
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When it falls into ruin, the entire global economy drags. We saw that happen during the financial crisis of 2008.
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Congress could under-fund the US coronavirus stimulus package. If they do, they put not only the economy but the effort to fight the virus at risk.
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Democrats also rejected the bill over a lack of labor protections that would only mandate corporations keep employees "to the extent possible." They want more limits on executive compensation and share buybacks, and they want more money for healthcare workers. They accuse Republicans of being cheap, and writing a deal that favors corporations over average Americans.
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The only proposal that comes close to being generous enough for individuals comes from Democratic Rep. Rashida Tlaib. It would give a prepaid card with $2,000 to every American. That card would then be recharged with $1,000 monthly until one year after the end of the coronavirus crisis. This is the kind of plan that will make Americans believe the government has their back, not just the backs of big corporations.
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The distrust that is bred by corruption will make it much harder to fight this virus, potentially dragging out the crisis. The vast majority of Americans already think that our lack of trust in each other and our government makes it hard to solve problems, according to Pew Research. If Americans feel like this whole aid package is a handout to big corporations — which they also distrust — they may stop listening to authorities.
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Goldman Sachs estimates that the recession brought on by fighting off coronavirus will trough in April, knocking 10% off US GDP. Over time, bank analysts wrote last week, the economy should begin to grow again incrementally. How fast depends on how well Americans comply with government social-distancing mandates. Americans have to want to comply.
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Small and midsize companies make up 83% of the US economy, and thousands of workers are already out of a job across the country. Means-testing initial payments to individuals — that is, restricting who gets the checks based on income — is a waste of time.