The $ 600 benefits, which add to the money from unemployment benefits, are part of the maxi-plan of more than $ 2 trillion in economic aid launched by Congress. Their deadline is currently set for July. The Democratically Controlled Chamber approved a $ 3 million appropriation that would extend the measure until the end of the year, but the Republican-controlled Senate stopped the measure, arguing that the economy is recovering.
According to the latest report from the U.S. Department of Labor, 21 million Americans are still jobless, despite the 2.5 million more jobs (unexpectedly) registered in May, which lowered the unemployment rate to 13.3%. Since the pandemic began, Congress has provided over $ 3 million in incentive funding, including $ 660 billion for small businesses to help them pay for their staff and stay open during the crisis. The Fed expects the US economy to contract 6.5% this year while the unemployment rate is expected to drop to 9.3.
The White House wants to accelerate this descent to maximize its fruits for electoral purposes. So the countermeasures, to replace the subsidies. According to Kudlow, the president is considering “a sort of bonus to return to work”, but less than the current 600 euros. The administration – Kudlow underlined – is optimistic that the economy is recovering because the number of new unemployment claims has declined in the past 10 weeks. “We are reopening and companies are returning. As a result, jobs are returning, “he told CNN.
Peter Navarro, a White House official, announced Saturday that Trump would support a $ 2 million incentive package to boost U.S. production. Kevin Hassett, another White House economic adviser, called Trump’s chances of supporting another package “very high.” For Jay Powell, president of the Federal Reserve, it will take a long time for unemployment to return to pre-Covid levels, which is why the central bank “is not even thinking about raising rates.”
The debate over how quickly the economy will recover comes as many states struggle with an increase in Covid-19 cases as anti-contagion measures loosen. Robert Redfield, director of the Centers for Disease Control and Prevention, said this week that the United States “is not out of danger.” The number of coronavirus cases in the United States has increased by over 25,000 over the weekend, with several southern states reporting the sharpest increases since the reopening began. In Texas, the number of new cases has risen from 2,331 to over 86,000, according to the Covid Tracking Project. Infections are also on the rise in Alabama, South Carolina and Florida, where a jump of 2,581 cases broke records for the third consecutive day on Saturday.
Florida Governor Ron DeSantis has eased restrictions on restaurants, bars, amusement parks, gyms and retail stores, while insisting on sanitation and social distancing. In St. Petersburg, a seaside city on the Gulf of Mexico coast in Florida, three bars have announced that they will close after employees test positive for the virus, according to the Tampa Bay Times. In all, the United States has recorded more than 2 million infections and over 100 thousand victims. In this context, Trump’s decision to resume the election rally has been criticized by many. The first stop – next Saturday in Tulsa – will take place in a location capable of hosting up to 19 thousand people. The rally was originally scheduled for June 19, the day the end of slavery is celebrated. The provocation to the Black Lives Matter movement is all too evident, which in the meantime cries and reports the killing of another African American by the police in Atlanta. As for the risk of becoming infected during the rally, participants will be made to sign a release form: in the event of contagion, no one will be able to claim compensation from Mr President or the organizers. The time when the election campaign, as well as the economy, could be dictated by Covid’s times is over.