Lockdown Stopped Two Thirds Of World Economy

Despite bitter political bickering, the United States passed its highest ever relief package to support the economy. It is valued at 2.2 trillion dollars, and another one trillion is coming, if not more. That would make it nearly 15 percent of the US GDP, as against 0.8 percent announced by India’s Finance Minister last week. And even that meagre announcement of India had items which had already been budgeted for, and hence were not part of the new relief spending. Keep in mind that the political bickering in the US Senate and Congress was not about the size of the package, but its composition. The Democrats claimed that the earlier proposal was too generous to corporations and too stingy to workers. Hence the revised proposal had a provision for a direct cash payment to every adult in America, barring a small minority earning a very high income. There were also tax breaks and loan incentives to companies to not retrench workers, and keep them on the payroll.

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