The outbreak of COVID-19 has a huge detrimental effect on the healthcare system with a ripple effect on the country’s economy and eventually on every aspect of human life. Social distancing, self-isolation and travel restrictions leads to a reduced workforce across all economic sectors and causes many jobs to be lost.
People have been required to stay at home but how are they supposed to put food on their table, let alone pay their monthly bills. This is where economic stimulus steps in.
What is Economic Stimulus?
Economic stimulus is a monetary policy made by the government intended to elicit economic response from the private sector within a targeted fiscal goal.
What Economic Stimulus is available for Americans?
The CARES Act is for All Americans (found here). The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress with overwhelming, bipartisan support and signed into law by President Trump on March 27th, 2020. With it being an over $2 trillion economic relief package, it aims to protect the American people from the public health and economic impacts of COVID-19.
Six million Americans are behind on a mortgage/rent bill, however, the Mortgage Bankers Association (MBA) showed that 3.4 million homeowners were enrolled in federal forbearance programs the same month.
Michael Fratantoni from MBA said that six months ago (start of pandemic) he would’ve expected to see much more distress, particularly on the rental side.
Recent studies prove that the programs, as part of the CARES Act, help American homeowners stay “afloat
1 Response to "Stimulus & Its Importance In American Economic Crisis"
[…] consequences of the COVID-19 pandemic. Millions are at risk of losing their homes. Thanks to the mortgage relief and foreclosure ban under the CARES Act. Many people are relieved from not having a roof over their heads during the […]