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Will the latest stimulus last long enough? - Marketplace

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The $900 billion coronavirus relief bill that Congress just passed is one of the largest stimulus packages in U.S. history, the largest being the original $2.2 trillion CARES Act passed in March.  

The passage of this latest relief took a long time, and a lot of the new help, which includes another 11 weeks of unemployment benefits, doesn’t last much further than early April. That’s a big part of the reason this bill may not go far enough.  

And don’t get Curt Spaulding started on government aid. Those one-time $600 stimulus checks? 

“What is $600 really gonna do for an individual at this point? Nothing,” he said. “It’s a drop in the bucket for closing our economy down for half a year or more.”

Spaulding co-owns Catmando’s bar and grill in Michigan’s Upper Peninsula. He is going to apply for the next round of Paycheck Protection Program money, but he says there wasn’t enough last time.   

“We are losing over $100,000 in revenues — well over that,” Spaulding said. “What do you think that does to me, my family, and more importantly my employees, who are out there struggling right now, not paying their bills, some of them trying to get food stamps?”

But the $900 billion does include a lot: special access to food stamps extended for six months, $300 weekly in extra federal unemployment benefits through March, Pandemic Unemployment Assistance funded into April. All with coronavirus vaccines rolling out. 

“This is a lot of firepower, and it would not surprise me if this is all that’s gonna end up being needed,” said Michael Strain, who is with the American Enterprise Institute. “We could have an unemployment rate in the 5-6% range by the summer.”

But if history is any guide, unemployment rates will be higher than that among lower-income and minority workers. 

“There are some businesses that closed that may never reopen. There are some jobs that are never going to come back,” said Ashley Harrington, with the Center for Responsible Lending. “So it doesn’t mean that when we do officially get the virus under control, the damage won’t still be there.”

President-elect Joe Biden has promised more relief once he’s in office. But timing, where Congress is concerned, is unpredictable. Diane Schanzenbach, director of the Institute for Policy Research at Northwestern University, said the most recent delays have been costly.  

“What we’ve seen, of course, in the last couple weeks is increasingly desperate situations, especially for low-income families,” she said.

And if that desperation means another stimulus is needed as soon as this one ends, well, human desperation didn’t really get Congress to move quickly the last time around.

Which essential workers should be prioritized for vaccines?

Americans have started to receive doses of the first COVID-19 vaccine. Front-line health care workers and residents of long-term care facilities will be first to get the shots, according to Centers for Disease Control and Prevention guidance. Essential workers will be considered next, but with limited vaccine doses and a lot of workers considered essential, the jockeying has already started over which ones should go to the front of the line: meatpacking workers, pilots, bankers and ride-share drivers among them. The CDC will continue to consider how to best distribute the vaccine, but ultimately it’s up to each state to decide who gets the shots when.

Could relaxing patents help poorer countries get vaccines faster?

The world’s poorest countries may not be able to get any vaccine at all until 2024, by one estimate. To deliver vaccines to the world’s poor sooner that, some global health activists want to waive intellectual property protections on vaccines, medicines and diagnostics. India, South Africa and Kenya have asked the World Trade Organization to allow pharmaceutical plants in the developing world to manufacture patented drugs without having to worry about lawsuits. The United States, Britain and the European Union, have repeatedly rejected the proposal at the WTO.

The Pfizer vaccine has to be kept in extreme cold at minus 94 degrees Fahrenheit. And keeping it that cold requires dry ice. Where does that dry ice come from?

Also, is there enough of it to go around? And how much is it going to cost? The demand for dry ice is about to spike, and a whole bunch of industries are worried. Now, dry ice sells for $1 to $3 a pound. While the vaccine gets priority, smaller businesses and nonessential industries may end up losing out.

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Will the latest stimulus last long enough? - Marketplace
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