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On Tuesday US Treasury Secretary Steven Mnuchin announced a proposal for an economic stimulus package that could be worth between $850B and $1T after the White House vowed to provide aid to businesses and the unemployed as a result of the current "situation."
Later, Secretary Mnuchin warned GOP Senators that unemployment could reach up to 20% if they do not step in and help. Not great, Steve.
Give me the details
The proposed package includes up to $500B in direct payments via check or tax cuts for individuals (start sending Secretary Mnuchin those Venmo requests), up to $300B in small business assistance, and as much as $100B in airline and other industry relief. Plus, the government is allowing a 90-day extension on paying taxes. No word on if there are any handouts for breakthrough newsletters.
Both Mnuchin and POTUS have made it abundantly clear that the plan is to get cash directly into Americans' hands faster than J.G Wentworth *dials 877-CASH-NOW*.
The most immediate relief would come in the form of an initial $250B tranche of direct payments that Mnuchin hopes can be sent to the public by the end of April *Checks calendar*. “Wait, that’s still like five weeks from now.” - literally everyone
The White House hopes that the injection will spur spending and keep the economy afloat. In case you had forgotten, consumer spending had been a driving force behind the continued economic recovery following the 2008 financial crisis.
And fear not, the payments will be vetted before being sent out to make sure that wealthy Americans aren’t receiving payments they don’t need. I bet you’re regretting that trust fund now, Chad!
So when do I get my check?
Hold your horses. Before Uncle Sam starts delivering Publishers Clearing House checks to every American’s doorstep the proposed stimulus faces an uphill battle in Congress before it reaches POTUS’ desk for signature.
And just in case there wasn’t enough bad news... it's officially #recessionszn. Womp, womp. That’s right, Morgan Stanley and Goldman Sachs have officially declared that we are in a recession. The banks are forecasting average growth of GDP this coming year to be just 0.9%, which for those of you tracking at home, is pretty damn bad.
In fact, that is the second-lowest growth rate since the 1990s with only 2009’s contraction of 0.8% being worse. So, you’re telling me there’s a chance?!
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