Easter 2020: Tackling economic challenges of coronavirus
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- Create Date March 24, 2021
- Last Updated March 24, 2021
Not only is the coronavirus a health and medical problem, but it also has huge economic challenges. China and the West face severe economic contractions. Cities are shuttered. Multiple industries have closed. Millions have suddenly been rendered jobless. Supply chains have busted. Economic activity is a fraction of what it was before. Deep recessions are forecasted. Some experts fear depression now tracks the world down. Governments worldwide are responding by embarking on unprecedented stimulus packages to keep their economies afloat.
The Chinese are pumping untold trillions into their financial markets and productive economy. The most austere large nation, Germany, casts aside its constitutional prohibition on deficit spending to enact a historic, unprecedented fiscal stimulus package. The free-market Tory government of Boris Johnson has abjured his conservative upbringing, if but for this harsh moment. His government has launched a fiscal stimulus unseen in the UK for decades. Likewise, the Bank of England vows to pump as much money into the financial market as is needed to unfreeze it and get it working again.
The conservative Trump government also abandons its laissez-faire ideology in the face of this exigency. Trump is giving 2 trillion dollars in fiscal stimulus and this will likely be just the first tranche. The Federal Reserve has announced an aggressive monetary policy to bolster the financial sector. This is atop the 1.5 trillion the Fed already promised.