"Let's Even Throw Money"…Advanced Countries' Emergency Response to COVID-19

US Plans to Distribute 2.5 Million Won to All Citizens Nationwide... 'Cash' Over Income Tax Cuts

[Asia Economy Reporter Naju-seok] Advanced countries such as the United States and Europe have begun distributing money. This is a desperate effort to prevent additional COVID-19 infections and revive the rapidly freezing economy.

According to the Washington Post (WP) on the 18th (local time), the U.S. government is pushing a plan to provide $2,000 (about 2.52 million won) to American adults. This plan involves issuing $1,000 checks twice, in April and May. The total cost of this disaster relief payment plan, which requires $500 billion, is included in a $1 trillion economic stimulus package.

Initially, the Donald Trump administration considered lowering payroll taxes, but changed its policy direction after suggestions that direct cash support would be more effective. In the U.S., there were concerns that even if social distancing measures such as staying home when feeling unwell were implemented to prevent the spread of COVID-19, people would inevitably face difficulties due to livelihood reasons.

On the same day, the U.S. Senate passed an emergency budget bill that includes free COVID-19 testing, enhanced unemployment insurance, food support for vulnerable groups, and paid sick leave. The White House announced that President Trump signed the bill immediately after Senate approval. AFP reported that the size of this budget is about $100 billion (approximately 123 trillion won), and Reuters estimated that the paid leave provision alone would cost about $105 billion.

The Japanese government is also promoting a plan to directly distribute cash to its citizens. According to the Mainichi Newspaper, the Japanese government is pushing a plan to distribute cash to counter consumption stagnation. Japan is considering increasing the amount compared to what was distributed in response to the 2009 Lehman Brothers bankruptcy shock. In 2009, the Japanese government distributed 12,000 yen (about 138,600 won) per person, and 20,000 yen (about 239,000 won) per person for those under 18 and over 65, investing a total of about 2 trillion yen (23 trillion 864 billion won).

Hong Kong announced last month that it would provide 10,000 Hong Kong dollars (about 1.63 million won) per person to 7 million adult permanent residents who have lived there for more than seven years.

Meanwhile, the European Central Bank (ECB), which announced a 750 billion euro emergency asset purchase program (PEPP) to supply liquidity to the market on the same day, stated, "We promise to do our part to support all citizens in the European region facing extremely difficult times."

This content was produced with the assistance of AI translation services.