Author Topic: Is $2 trillion stimulus package enough to save the economy?  (Read 4265 times)

Ms.Conviviality

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The Dow, Nasdaq, and S&P 500, were all up 5%+ today.  Based on the reaction from the markets, it seems that people believe the $2 trillion stimulus package will keep the U.S. from going into a recession.  Sure, the money will allow individuals/companies to somewhat go on with their business as usual for another few months but doesn't get to the root cause of the problem which is COVID-19.  The number of infections are still going up significantly everyday and the U.S. will surpass Italy very soon to have the second most confirmed cases.  The more people infected, the more people that they will infect.  The only options are to shelter in place or return/keep going to work.  Going back to work is risky since the virus is very contagious, so depending on one's health, this could be a deadly decision and companies could end up losing highly productive employees.  Even if a person was healthy, they could still feel unwell enough to not be productive at work.  Have enough employees that are unproductive and this can bring GDP down, not to mention the loss of productivity from the roughly 3M that became unemployed since the outbreak of the virus.  Who knows how long it'll be before people start feeling comfortable about traveling and spending money again.  I'm not convinced that we've seen the bottom of the market yet.  What do you think?