The speaker of the House of Representatives proposes to adopt CARES 2 – another package of emergency economic measures.
Speaker of the House of Representatives Nancy Pelosi said that it is necessary to increase budget expenditures to combat the consequences of the coronavirus pandemic in the United States. This is stated in the statement of the speaker, published on Friday.
“The numbers are appalling: 6.6 million applications for unemployment benefits, 700,000 lost jobs, according to the March labor market report, more than 245,000 confirmed cases of coronavirus and 6,000 deaths,” Pelosi said.
In her view, the expansion of the pandemic requires a doubling of public spending on the fight against the virus and its consequences.
Last week, President Donald Trump signed the law (CARES Act), providing for the allocation of aid to the American economy for a record amount of 2.2 trillion dollars. Today, Pelosi proposed a second such law, CARES 2, to “meet the needs of the American people.”
The speaker believes that further assistance to small businesses, the issuance of unemployment benefits and the provision of benefits to families in vulnerable situations is necessary.
“We also need to provide much-needed resources for our hospitals, community health centers, health systems, and healthcare professionals… We will not be able to defeat this virus if we do not more strongly support state and local governments with significantly more resources,” said Nancy Pelosi.
In addition, the speaker suggested taking measures to restore infrastructure to “address some critical vulnerabilities in America identified as a result of the coronavirus outbreak.”
The US Department of Labor released a March report on the labor market on Friday. The report said employers cut 701,000 jobs last month, lifting the unemployment rate to 4.4%, up from 3.5% unemployment in February. This was the largest monthly increase in unemployment since January 1975.
However, Friday’s report does not reflect the millions of applications for unemployment benefits that were filed during the last two weeks of March due to the coronavirus pandemic. These figures will be reflected in the April report.
On Thursday, the Congressional Budget Office released a forecast for the state of the economy. It says that unemployment will soon rise above 10%, and gross domestic product will shrink by 7% in the second quarter.