The Global Pandemic will cost at least 5 million jobs in the United States. The GDP is expected to shrink by 2% in the first quarter and 3% in the second quarter of this year.
Congress is formulating a plan to pump $2Trillion dollars to keep businesses afloat.
The details revolve around how to best implement such a plan.
Some economist would suggest paying laid off workers 80% of their salary, funded by federal debt, so that when the Virus runs its course the economy will have all of the pieces in place to come back at full steam.
Additional money, of course, would need to paid directly to the companies and businesses to maintain loan payments, rents, insurance, and other operating expenses even while they are not operating.
Somebody else will have to figure out how to actually pay for all of it later. The deficit was already running record highs while unemployment was at it the lowest point. When the Country is at full employment and is still spending more than $1 Trillion dollars than it brings in, that tax base was not expected to grow any larger.
Higher Taxes and Reduced Spending on Social Security and Medicare/Medicaid would be the only 3 places able to generate enough revenue to bring the debt down any. All other cuts would just cover portions of the interest payment.
The promising news is that the approved property tax hikes will continue to fund the teacher raises and city/county raises given at the beginning of the year and are locked in so police and firefighters, and local government employees will remain secure Thanks to the foresight of local leaders who planned ahead.
The Saving Grace for Terre Haute will be its Casino and Convention Center that promise piles of cash, the best jobs ever, and quality of life improvements for City residents that will make Terre Haute a tourist destination once the Global Pandemic has passed.
Residents will continue to have a chicken in every pot and car in every driveway.
See You In Terre Haute 2025….
or maybe 2030