The $2 trillion relief bill is massive, but it won’t prevent a recession

Washington Post logoA $2.2 trillion relief package for the U.S. economy — the biggest in history — probably won’t be enough.

The Senate just passed a $2.2 trillion relief package for the economy — the biggest in U.S. history — by a unanimous vote. The House is expected to approve it soon, and President Trump is eager to sign it.

The good news is that the majority of the money will go to laid-off workers, small-business owners, hospitals, and state and local governments. The bad news is that it won’t be enough to stop a recession. And it’s an open question whether the nation can avoid an economic depression, the likes of which haven’t been seen since the 1930s.

“By any measure, this is a huge stimulus package. One thing that it cannot stop is the recession that is coming,” said James McCann, senior global economist at Aberdeen Standard Investments. Continue reading.