Economics
Those $1,000 Checks Can’t Stop the Inevitable U.S. Recession
- Some economists warn of 10% contraction in the second quarter
- Stimulus will support bank accounts but fail to save expansion
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President Donald Trump’s plan to potentially send more than $1,000 to Americans, part of emergency stimulus of as much as $1.2 trillion to contain the economic hit from the coronavirus, is unlikely to stop a U.S. recession.
The administration announced plans Tuesday to send the direct payments in coming days following several weeks of pressure from investors, economists, left-leaning think tanks and Republicans such as Utah Senator Mitt Romney. The numbers haven’t been decided on, could vary depending on household income and dependents, and may come in installments.