Krugman: "US Economy May Need Monthly Economic Stimulus Packages Worth Hundreds of Trillions of Won"

"Job Losses Increase and Corporate Financial Pressure Rise Due to COVID-19... We Must Help People Endure Life"
"Unemployment Benefits Are the Most Important Policy to Mitigate Economic Shock"

[Asia Economy Reporter Jeong Hyunjin] Paul Krugman, Nobel Prize-winning economist and professor at the City University of New York, said that a monthly economic stimulus package worth hundreds of billions of dollars may be necessary to revive the economy in response to the impact of the novel coronavirus disease (COVID-19).

On the 5th (local time), Professor Krugman appeared on a CNBC program and said, "We are still mostly in a state of disaster relief." He pointed out, "Many people have lost their jobs due to COVID-19, and companies are under pressure," adding, "It is necessary to make their lives bearable."

Professor Krugman said it is difficult to specify the ideal size of the stimulus package. However, considering the United States' failure to contain COVID-19, he emphasized that a truly large-scale stimulus package is needed. He expressed concern, stating, "The number of unemployed has increased by 11 million compared to before COVID-19, state governments are suffering from severe financial pressure, and thousands or millions of companies are on the brink of collapse."

Professor Krugman said, "We need to help them endure so they do not go bankrupt," and added, "Although expanding unemployment benefits is the most important policy to mitigate the economic shock caused by COVID-19, it is unfortunate that the Republican Party has shown a negative stance, calling it 'rewarding people who do not work.'"

The United States implemented a $2 trillion stimulus package last March and has been trying to prepare additional stimulus measures recently, but has failed to reach an agreement due to differences of opinion among the Democrats, the White House, and the Republican Party.

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