The coronavirus pandemic has ravaged communities and continues to wreak havoc on the world. As the virus continues to spread, the public health crisis has only intensified, and the economy has taken a nasty turn for the worse. Now, some are speculating that the recession may only get worse and result in one that double-dips.
One key speculator is Jamie Dimon, CEO of JPMorgan Chase & Company. Before delving into his concerns about the future of our economy, it is important to address what his current opinions on the United States economy are.
In a recent statement, Dimon expressed that he believes a second stimulus package would be a smart decision. He said, “a decent stimulus package would be helpful.” As for his rational, he elaborated to say that it would help to alleviate the struggles of lower-class Americans. Moreover, it would minimize the chances of a double-dip recession occurring and help to mitigate the problems experienced by small business and unemployed Americans. Dimon closed his statement by saying “if you have a double-dip, there will be considerable pain and suffering.”
The talk of another round of stimulus checks has been a contentious and highly political one. According to CNN business, “President Donald Trump shocked Wall Street last week by unilaterally calling off stimulus talks only to reverse himself by renewing a push to get a deal.” Now that the President has resumed negotiations, it has become even more clear of the divide between conservatives and liberals.
Republicans and the Trump administration have proposed a plan that will cost $1.8 trillion while the Democrat led House of Representatives have passed a proposal which will cost $2.2 trillion. The substantial difference in proposal will likely lead to a stalemate and no deal.
A double dip recession occurs when an economy starts to revive, but then takes another significant plunge. Politicians and citizens should be extremely cautious when it comes to a double-dip recession as it results in an even more dire economic situation.
Republicans and Democrats alike believe that another round of stimulus checks is crucial to reviving the economy. Though they cannot seem to agree on the amount that should be invested.
The lack of political unity in the face of the virus ultimately takes the largest toll on the citizens. Small businesses are suffering and the unemployed grow ever more vulnerable all the while politician’s lives remain largely stable.
It is imperative that Democrats and Republicans reach a solution and can help the American public.