atans1

Can the hard-hit spend their way out of a recession?

In Uncategorized on 17/04/2020 at 6:18 am

This Chinese bizman from Wuhan has a great question that shows the enormity of the problem govts all over the world face,

“How can you spend your way out of recession when you have a mortgage and other bills to pay and your job is under threat?

FT quoting a Wuhan resident

Many European countries (frollowing Germany’s tried and tested approach) are using short-term paid leave schemes to shield workers. S’pore (ang moh tua kee) is also doing something like this except that the employees are still on the cos’ payrolls.

Meanwhile US is flooding the system with cheap loans, some of which is forgivable if used to pay employees until September, rather than sack them.

Many countries including S’pore and the US are also giving “peanuts” directly to the peasants.

But will the peasants spend? They might decide to be prudent?

  1. economy of jb, johor will suffer further if johor/m’sian govt were to impose many rules before local men can go over there.

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