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Covid-19 has exposed just how broken American economy & society are – a $2 trillion package alone won’t fix it

14 98 597
25.03.2020

Despite all the wrangling, there will be a national economic stimulus package passed by the Congress and signed by the president. Domestic political imperative guarantees as much. The American economy has largely shut down because of the social lockdown mandated by the coronavirus pandemic, and without a stimulus package the entire system would collapse with little hope of ever fully recovering.

The cost of the package will approximate $2 trillion, give or take a few hundred billion. No matter what the final amount is, it will exceed by far the nearly $1.5 trillion combined bailout/stimulus packages approved by Presidents George W. Bush and Barack Obama to recover from the 2008 economic crisis. The 2008 package, however, was a one-time deal; the coronavirus stimulus covers a period of approximately one month, after which the economy either gets restarted, or Congress and the president will be looking at the need for a follow-on stimulus package of similar size and scope.

The coronavirus pandemic has exposed some uncomfortable truths about the state of America today. First and foremost is the fragility of the American economy. After years of outsourcing manufacturing, the United States has constructed an economy where services industries comprise some 55 percent of overall economic activity. In the age of globalization, with interconnectivity functioning seamlessly, this model has been able to generate........

© RT.com