$350 billion of forgivable loans for 8 weeks won’t be enough to save 30 million small businesses, Mr. President:http://dailytorch.com/2020/04/350-billion-of-forgivable-loans-for-8-weeks-wont-be-enough-to-save-30-million-small-businesses-mr-president/
One of the key aspects of President Donald Trump and Congress’ $2.2 trillion coronavirus relief package are provisions for $350 billion for 30 million small businesses to cover payrolls for 60 million Americans for eight weeks to encourage people to stay home to wait out the Chinese coronavirus pandemic. Along with the expanded unemployment and credit facilities covering critical industries and larger employers, the policy is designed to ensure that in saving as many lives as possible — the White House coronavirus task force has said as many as 2.2 million Americans could die without social distancing — we don’t find ourselves in a long, deep recession or depression as a result that might take a decade to recover from. As President Trump keeps saying, the cure cannot be worse than the disease. That is why we have to consider the very real possibility that $350 billion and eight weeks of loans will not be nearly enough to save these businesses, even if we have no new coronavirus cases come May or June. Looking back at the ten recessions that have occurred since 1948, it took on average 11 months for all the job losses to be realized to get to the labor market bottom, and another 16 months to recover. The entire ordeal lasts on average 27 months. Do you think we’ll get a speedy recovery after the pandemic ends?
