The Future of the Global Economy and the $2 Trillion Fiscal Stimulus Package
Date Published: March 26, 2020
On Thursday, March 26, CKA Executive Director Abraham Kim moderated a conversation on, “The Future of the Global Economy and the $2 Trillion Fiscal Stimulus Package” with top global economic and political risk experts, featuring Eurasia Group’s Robert Johnston, Ph.D., Managing Director, Energy, Climate & Resources & Executive Advisor, and Meredith Sumpter, Head, Research Strategy & Operations
The conversation delved into the economic outlook for the U.S. and the long-term effects of COVID-19 on the global economy. In addition, they discussed the destabilizing impact of the global oil price war going on between Russia and Saudi Arabia and explored the various future economic scenarios following the passage of the $2 trillion fiscal stimulus package being considered in the U.S. Congress.
To view a recording of CKA’s Webinar, please click the thumbnail above. If you’re interested in continuing the conversation, please join our Facebook group here to continue sharing news, articles, and resources with one another.
Key Takeaways from the Webinar:
- We are in the beginning stages of the impact that COVID-19 will have on the global economy and affected countries’ public health systems. We are just starting to see COVID-19’s far-reaching implications for supply chains and investment strategies as well as national stability and global power structures. The unfolding of the COVID-19 crisis is a once-in-a-lifetime shock akin to the Spanish Influenza or a World War. In many ways, the COVID-19 crisis has much more serious repercussions than the financial crisis of 2008 due to our country’s lack of political capacity to coordinate with global governments.
- This is the first global crisis to hit a world without strong global leadership alliances, which can be shown in the uncoordinated manners in which nations are responding to COVID-19. This will lead to a prolonged public health crisis and the pandemic’s detrimental effects on societies and economies.
- While we are seeing the robust quantitative ability of central banks and governments to respond to this crisis, which has culminated in the unprecedented two trillion dollar stimulus package, it is much harder to measure the qualitative response of governments and institutions as they manage the virus and failing to coordinate effectively between entities.
- Back in 2008 and post-9/11, the financial shocks that followed caused constraints on both supply and demand for companies and businesses. What’s unique this time around is that even with robust fiscal packages and lower negative interest rates, we will experience the constraints of the COVID-19 so long as the virus continues to spread.
- The federal government states that although it’s incumbent to take the necessary precautions to stop the spread of the virus, we also cannot allow the U.S. economy to come to a full stop. Conversely, public health officials believe we need to take more stringent measures akin to what we’ve seen in China and other locales in order to effectively tackle and cease the spread of the virus, even if at the cost of negative short-term effects on our workers and the economy.
- So long as COVID-19 is spreading within the United States and proper measures are not being taken to drastically reduce that spread, our country will not be able to take any tangible steps towards long-term economic recovery.
CKA will be hosting additional webinars on the repercussions of COVID-19 on our community, the global economy, our healthcare system, and more. Please follow us on Facebook, LinkedIn, Twitter, and Instagram, and don’t forget to sign up for our newsletter to stay informed.