US Predicts Economic ‘Bounce Back’ as Pandemic Spending Rises

US Predicts Economic ‘Bounce Back’ as Pandemic Spending Rises

The United States Congress this week passed a new financial aid bill for $483 billion, which adds to the huge $2.2 trillion emergency package approved in mid-March.

Another great assistive device from emergency, this time for struggling state and local governments, is currently under discussion.

However, resistance to growth of the expenditure It appears to be on the rise among some Republicans, as evidenced by the suggestion made this week by Senate Majority Leader Mitch McConnell that it would be preferable for states to declare bankruptcy.

McConnell’s comments were heavily criticized by Democratic governors and some of his Republican peers, and have so far had no echo in the White House.

“As I said, this is a war. We will win this war, ”said Mnuchin. “If we need to spend more money, we will, and we will only do so with bipartisan support.”

Referring to the growth of the public debt, He noted that the government “will need to analyze, over time, how it handles that problem.” “But right now we are in a war and we have to protect the workers and the Business Americans. And we will do what is necessary, ” he remarked.

However, White House economic adviser Kevin Hassett warned on ABC’s “This Week” that the impact of the pandemic is being so serious that it may have long-term effects.

Some 26 million people have applied so far subsidies by unemployment in United States.

“We are going to see negative growth in GDP in the second quarter it will probably be around 15%, 20%, ”he said.

“It is the biggest negative shock we have seen since World War II. (…) The good news is that we have this bipartisan action, this construction of a bridge to the other side, but many other problems will still appear. ”