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Tuesday, August 18, 2020

White House Economic Adviser Discusses Impact of Financial Stimulus Response

 COVID was unprecedented and it is doubtful that any stimulus package would be perfect but it appears from this video that what was offered was pretty good and made a significant impact on our economy. When economic shock occurs the standard process includes creating liquidity in the market that props up certain sectors to keep them moving, spending, and adjusting. 

There is some discussion on what is going to happen next. Congress is currently engaged in discussions on the next stimulus package. Targeted areas could be more helpful if we expect to launch out of a COVID economy. That is dependent on whether or not there is a vaccine or natural reduction in risk. If we are very close to a vaccine I think we should consider that in any package to ensure that we are using our money as wisely as possible. 

We must also consider a medium and long-term plan on how to develop the economy. I have been working on a theory to develop the right environment to create clusters that in turn speed innovation and develop new industries. That can only happen if important economic elements are moving, adjusting and changing through our natural American entrepreneurial spirit. Liquidity and cheap loans are part of that. 

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