The US economy is in a severe crisis due to the coronavirus pandemic. A good 33 million people have applied for unemployment benefits since March. The Democrats are now calling for another massive stimulus package.
Washington (dpa) - The Democrats in the House of Representatives want to adopt another massive stimulus package because of the Corona crisis.
The package is expected to provide at least $ 3 trillion, including for expanding social programs, healthcare, and helping states and communities. That said Nancy Pelosi, the Democratic chairwoman of the House of Representatives.
The Democrats could pass the 1,800-page legislative package with a majority in the parliamentary chamber on Friday, but the Senate, controlled by Republicans, has already declined. A farewell therefore seemed very unlikely.
"We have to do great things for people now, because if we don't do that, it will cost more life and livelihoods later," Pelosi told journalists. "Not acting is the most expensive way," she emphasized - and in view of the new debt required for the package, referred to the historically low interest rates. The package would correspond to more than 10 percent of annual US economic output.
Support for the 50 states and municipalities is important to the Democrats: they have to shoulder more expenses because of the coronavirus pandemic, even though tax revenues are slumping. The law package provides them with nearly $ 1 trillion in aid. In addition, taxpayers are expected to receive additional direct aid payments of up to $ 6,000 per household to help deal with the consequences of the pandemic. A further $ 75 billion is earmarked for coronavirus testing and contact tracking.
The US Congress has already launched $ 2.7 trillion stimulus packages in March with the support of both parties. The government of Republican Donald Trump's position is that the effect of the previously passed laws must now be awaited before further measures can be considered. The US economy is in a serious crisis because of the pandemic. A good 33 million people have applied for unemployment benefits since March.