Kudlow: Coronavirus Relief Plan Worth More Than $2 Trillion
- The proposed relief package is worth around 10% of the US GDP
- This would be the third and, by far, the biggest relief coronavirus package
- “The bailout requests are mind-boggling,” says analyst
Larry Kudlow, White House Economic Advisor, has said that the coronavirus relief plan is worth more than $2 trillion as Senate races to finalize the terms of the package. The latest number is double what the administration requested several days ago.
“The package is coming in at about 10 percent of GDP,” said Kudlow before adding that the administration is “just trying to cover the right bases.” For 2019, the United States recorded a GDP of $21.42 trillion.
If approved, this will be the third aid package, and by far the largest. President Trump previously signed a $100 billion aid package, focused on paid leave for workers and free testing, while the first aid package, worth $8.3 billion, aims at supporting government health officials and vaccine research.
“There are a lot of good cases to be made and a lot of intense lobbying to have your industry get in the mix,” said Aaron Cutler, a partner at Hogan Lovells.
“There are so many secondary sectors that are impacted beyond just hotels and casinos: airline part suppliers, seafood industry supplying the fish and seafood to restaurants, meatpacking industry and so forth.”
Media outlets previously reported that Trump’s administration requested a rescue package worth around $1 trillion. According to some reports, around $50 billion is intended for the airline industry alone, another $8 billion for cargo air carriers while “distressed businesses” from other industries are likely to receive $150 billion in total.
“The bailout requests are mind-boggling. And it’s going to be a matter of who’s going to win and who’s going to lose,” said Dennis Kelleher, chief executive of advocacy group Better Markets.
Online reports note that requests for financial support are coming from all sides while numbers are going through the roof. Accordingly, the restaurant sector requested $145 billion, a figure slightly lower than $150 billion requested from the hotel industry.
Shopping centers want $1 trillion, which is still lower than $1.4 trillion requested from the National Association of Manufacturers.
More precise data will be known over the course of the next week, but President Trump has already hinted that his focus will be on protecting the largest employers.
