, Columnist
Trump’s $1.2 Trillion Won’t Do It. Try $2.5 Trillion
The coming slowdown might be so deep that nothing less will do.
Steady there.
Photographer: Oliver Contreras/BloombergThis article is for subscribers only.
President Donald Trump's administration proposed $1.2 trillion plan to counter the economic crunch brought on by the coronavirus. It is a step in the right direction. But we need a much bigger and much better targeted fiscal stimulus.
Like most forecasters, I expect a considerable amount of economic drag from Covid-19 and social distancing. However, unlike them, I see this drag lasting well into next year. This recent analysis from a team of researchers in the U.K. suggests that, until a vaccine is developed, governments will have to choose between two unpalatable options: