The monetary impact of coronavirus is well known to everybody. Millions of Americans have undergone unemployment and loss of income. The last few months have been tedious for them. William D King, it is the hiring sector, stock market, business sector, or the educational sector, economic indicators imply their downtown. The Coronavirus Aid, Relief, and also Economic Security Act came as a response from the federal government of the US. It came in March 2020 and furnished financial support to households and businesses.
Different provisions of the act were especially for several sectors of the economy. The economic vulnerability emanating from COVID-19 has brought disproportion in terms of impact. Hence, individuals with minimal savings and low income who come within the category of the vulnerable section have endured severe effects.
The 880-page long document is well-design. To cater to the economic crisis. Different provisions of the act extended support to employment, individual income, and also a business. Moreover, the healthcare sector and hospitals also form an integral part of this policy. Hence, it is a comprehensive policy that provides financial aid not only to the central government but also to the federal government as well.
The CARES act comes as a relief for different sectors of the economy, as illustrated by William D King.
The expansion of unemployment benefits along with Economic Impact Payment has become the centerpiece of this act. By offering support to individuals, the policy takes care of vulnerable households. $560 billion got allocated to individual households. Of these, $300 billion are for the Economic Impact Payment, whereas $260 billion are for unemployment benefits. The unemployment benefit comes as vast support as it takes care of the most vulnerable section of society. They get an additional $600 every week as unemployment insurance. With open arms by the small businessman. Apart from this, the student loan payment got temporarily. Suspended for giving support to the learners. These steps are all an integral part of this act which has instilled renewed energy into the economy.
Going into the details of the act provides that $1200 is for the adults while $500 for children. William D King points out that the eligibility criteria differ from category to category. These payments are necessary for unemployed individuals and also struggling households. Different reports from across the country form the basis for designing the act.
Federal legislation for supporting vulnerable sections
When it comes to the CARES act, it takes care of significant economic equity issues and also helps to improve the future economy. The economic shock on vulnerable sections becomes the basis for the support provided by the government. Financial volatility and low emergency savings are the two fundamental problems. Faced by low-income households. It exposes them to a higher risk in terms of eviction and also food insecurity.
Apart from this, Hispanic families, Black homes, and low educational attainment are uniquely vulnerable. These economic variables are necessary for extending support to the target population. The financial crisis that has currently left every government of the world is a paradox.