1/16/2024 0 Comments Helping them keep afloat![]() ![]() ![]() history,” said Adam Posen, president of the Peterson Institute for International Economics in Washington, D.C. “Except for wartime expenditures during World War II there is nothing comparable to this in U.S. “By assuring the flow of credit in the economy and keeping rates low, we want to assure that that rebound, when it does come, is as vigorous as possible.” “There can also be a good rebound on the other side of that,” he said. The chairman acknowledged that the economy will suffer and that unemployment will rise. In an interview Thursday on NBC’s “Today” show, Powell said the Fed would lend an essentially unlimited amount, if necessary, to support banks, businesses and city and state governments until the viral outbreak is brought under control. And it’s readying a loan program for small businesses.įederal Reserve Chair Jerome Powell has made clear that the central bank will do what it takes to support the economy. It’s also buying so-called commercial paper, short-term IOUs that companies issue to cover operating costs such as payrolls. ![]() It’s flooding financial markets with cash by buying up securities, including government and, for the first time, corporate bonds. It has slashed its benchmark interest rate to zero. By comparison, President Barack Obama’s $787 billion stimulus plan in the depths of the Great Recession amounted to about 5.5% of GDP.Īnd that doesn’t count what else the Fed is doing. Companies can also defer payment of the 6.2% Social Security tax, giving them an incentive to put off layoffs at a time when ordinary business has come to a halt.Īlso included is $454 billion in seed money that will allow the Federal Reserve to make roughly $4.5 trillion in loans to larger industries.Īt $2.2 trillion, the money that Congress and the Trump administration are throwing at the economic crisis amounts to more than 10% of America’s gross domestic product - the broadest measurement of economic output. The package includes $50 billion in tax credits for businesses that keep employees on payroll and will cover 50% of those workers’ paychecks. The support for individuals and households is especially important because the social safety net in America isn’t as strong as it is in the wealthy developed countries of Europe. For the first time, gig economy workers such as Uber drivers can claim unemployment benefits, too. The package will also help replace the earnings of unemployed workers for four months, providing them with their state’s unemployment benefits plus an extra $600 a week. Among other things, FEU has kept members updated with the latest changes in the legislation, held online trainings, supported companies to relocate their operations and facilitated business matchmaking.The payment is reduced by $5 for each $100 that a taxpayer’s income exceeds those thresholds, and is completely phased-out for single filers with incomes exceeding $99,000, $146,500 for head of household filers with one child, and $198,000 for joint filers with no children. It is estimated that FEU members contribute to about 70 per cent of the national GDP and offer employment to over 5 million workers.Īlthough the war has put the FEU operational continuity and finance under strain as membership fees decreased significantly, the organization adapted quickly and continued to support its members remotely. The Federation of Employers of Ukraine is recognized as the most representative national level employer organization in the country, with a membership of 140 regional, sectorial and associated employer associations. The project allowed to keep up production and pay salaries to more than 200 workers for a week,” explained Ruslan Illichov, FEU Director General. Each product in these food boxes is made by Ukrainian hands at Ukrainian enterprises. Helping our fellow Ukrainians is a good way to support our local producers. “We need to reduce further economic loss and ensure business continuity. Helping our fellow Ukrainians is a good way to support our local producers.” ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |