The US economy ravaged by the coronavirus pandemic

Text by: RFI Follow

The Trump administration once again failed on Monday, March 23, to agree with the Senate's Democratic and Republican politicians on a long-awaited plan for massive support for the US economy, which has been severely affected by the coronavirus epidemic which has effects on many sectors in the country.

Publicity

The elected Democrats, as Sunday, March 22, rejected the measures proposed by the Republicans, and the motion, which would have allowed a quick vote on the text, won only 49 votes out of the 60 required. This bill aims to mobilize close to $ 2 trillion.

Democrats have said it contains too little money for hospitals and not enough restrictions on a fund to help big business. The Republicans then accused the Democrats of obstruction in a period of national emergency.

Sudden drop in GDP

The coronavirus epidemic is spreading with its economic effects throughout the country. In terms of employment and commercial and industrial activity, the first figures are expected this week. But already, the first trends are there.

While the United States has been accustomed for more than ten years to uninterrupted growth, the coronavirus crisis will put an end to this beautiful story. With companies paralyzed, GDP will fall sharply: $ 1.5 trillion in production will be lost, according to the Wall Street Journal.

Many sectors, such as textiles and commerce, fear that they cannot recover. According to economist Thomas Philippon of New York University, the most worrying phenomenon remains unemployment. In his view, the American authorities did not take the necessary measures in time. Partial unemployment, for example, has not been organized. Millions of precarious workers will find themselves on the floor. The figure of 5 million additional unemployed is circulating.

According to analysts at insurer Allianz, the unemployment rate in the United States should almost double and exceed 6%. We will know very quickly since breaking a work contract in the United States is very easy.

Very expensive containment

The American president, worried about the economic repercussions of the pandemic, questions the relevance of the containment measures. Donald Trump would consider reopening companies by the end of next week, despite the opinions of experts who believe that a return to normal would risk exploding cases in a country already heavily affected by the pandemic.

" We cannot let the remedy be worse than the problem itself. After a period of two weeks we will make a decision, ”tweeted Donald Trump, before relaying a series of messages that plead for a return to work for the Americans.

WE CANNOT LET THE CURE BE WORSE THAN THE PROBLEM ITSELF. AT THE END OF THE 15 DAY PERIOD, WE WILL MAKE A DECISION AS TO WHICH WAY WE WANT TO GO!

The reopening of businesses at the end of the month was also approved by Larry Kuddlow, the White House economic advisor. " We cannot shut down the economy, " he said. The economic cost to individuals is too great. So let's see how things turn out. It is essential to do more screening tests, we are making progress on this, it will help. But the president is right : the remedy must not be worse than the disease . ”

Given the lack of screening tests and the lack of protective equipment, the return to work of the Americans would risk catastrophically worsening the spread of the disease, which has not yet peaked in the United States, specifies our Washington correspondent, Anne Corpet .

" The coming week will be worse than the previous week ," warned the head doctor of the federal government. Containment measures continue to be implemented in the country, on the initiative of the local authorities. But the president's speech could push Americans to dispense with these basic precautions.

► Read also: United States: who is Anthony Fauci, the researcher appointed by Trump to fight against the coronavirus?

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• Economy
• Finance
• Coronavirus
• Employment and Work
• United States

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