Current News

/

ArcaMax

Q&A: Lawmakers have negotiated a $2 trillion coronavirus stimulus package. What happens next?

Erin B. Logan, Los Angeles Times on

Published in News & Features

Q: Can President Donald Trump's, or any federal official's, businesses benefit?

A: According to Schumer, no. The proposal would bar businesses controlled by the president, vice president, members of Congress and heads of executive branch departments from receiving loans or grants from the Treasury programs. Their children, spouses and in-laws also could not benefit.

Q: Will the bill fix the economy and fully address the pandemic?

A: While the bill is intended to stimulate the economy and halt further market declines, there's no guarantee it will be a cure-all. Markets surged Tuesday in anticipation of the deal and rose further on Wednesday morning. Economists believe the U.S. is already in a recession. States including New York have already expressed concern that the current deal is not enough, and many lawmakers feel additional legislation will be needed.

Q: How will this affect the federal deficit?

A: It will grow, that is certain. But, leaders in both parties and main economists believe that's necessary. The Committee for a Responsible Federal Budget, a bipartisan think tank based in Washington that normally campaigns for reduced deficits, said late Tuesday that the deficit would "easily exceed $2 trillion this year and next." But it said that "now is not the time to worry about near-term deficits. Combating this public health crisis and preventing the economy from falling into a depression will require a tremendous amount of resources -- and if ever there were a time to borrow those resources from the future, it is now. Larger deficits are not only an inevitability, but are, unfortunately, a necessity."

 

(Los Angeles Times staff writer Sarah D. Wire contributed to this report.)

(c)2020 Los Angeles Times

Visit the Los Angeles Times at www.latimes.com

Distributed by Tribune Content Agency, LLC.

 

Comments

blog comments powered by Disqus