Answer

Government Intervention during the Coronavirus Recession

            Rightly said, the government’s intervention amidst the coronavirus pandemic that extends the US economy’s recession that has been projected to be imminent for some time is unavoidable. As it stands, it is not a question of ‘if’ but ‘when’, with positive reports being expected by the beginning of July. With the unevenly distributed contribution, since it is tax-dependent, the move to stimulate economy attracts criticism as much as it is praised. Nevertheless, it stands as the most viable option presented – fiscal support. The question of degree of intervention is the interest of this short discourse.

            I opine that the intervention of the government is not too much, however much it may seem at the starting point. The fact that the world economy hinges on the US’s is primal to the effect of the recession as it escalates to the global economy. Therefore, the intervention the US government accords is reflective and rippling in measure. Yet the primary concern the effects of the recession on resident citizens, beginning from escalating unemployment which raises dependability to businesses’ collapse, is greater and needs seamless addressing. The factors presented negates the view of over-intervention of the government as long as the recovery plan is well measured, and it is.

            The effect of the intervention on the economy in the short term would be boosting, as credit markets will stabilize. Further, the purchasing power of individuals will be raised, and the likelihood of inflation is high, with the economic forces at play. In the long term, however, the economic recession is likely to be reversed and the stimulus injection recovered through taxation. In essence, the recovery pattern will show slow progression at the first before a steady rise. Precisely put, the intervention will soften the economic blows.