the IMF forecasts a major economic collapse on a global scale because of the current pandemic, compared with which the Great depression might not seem so terrible. There is no country whose economy one way or another would not suffer from coronavirus crisis. But this challenge in different countries respond differently. U.S. senators agreed on 21 April, the allocation of a further $ 480 billion in aid to business. “MK” offers to compare, how to help people and businesses in the U.S. and other countries.
First with coronavirus had to deal with China and this country was the first to feel the negative economic consequences associated with this epidemic.
due to taken by the authorities firm and decisive measures to curb the spread of the coronavirus China faced in the first quarter of this year with the first major downturn in the economy over the past decade. The closure of entire towns and provinces in quarantine meant that many enterprises were idle, disrupted the production chain. According to official statistics, in January-March 2020 budget revenues fell by 14.3 percent. During the same period, the income of Chinese state enterprises under the Central government fell by 11.8%.
the Chinese government adopted an aggressive plan to rescue the national economy, intended to stimulate people to work, strengthen the confidence of business and to protect as many companies as possible from closing.
Billions of dollars invested in medication and treatment, as well as in infrastructure projects to create jobs.
At the same time, huge importance is given to assistance to small and medium businesses. In particular, it introduced tax breaks and reduced VAT. In General, measures to reduce taxes is expected to reduce the burden on Chinese enterprises by 1.6 trillion yuan (about $227,25 billion).
it’s worth to mention the efforts to promote the purchasing power of citizens, which, in turn, should spur the development of certain sectors of the economy. An interesting initiative was the decision to pay the Chinese subsidies of up to $ 1,400 for the purchase of a car. Ultimately, as expected, this measure will not only play into the hands of crisis automakers, but will be beneficial for the Chinese economy as a whole, because in the automotive industry directly or indirectly employs more than 40 million people, and the industry brings the country more than a trillion dollars a year.
In different regions of China has taken various measures to stimulate demand for goods and services.
So, for example, in Urumqi, capital of Xinjiang Uygur Autonomous region for recovery of consumer potential, the authorities began to issue public electronic consumerpublic relations coupons. These coupons will enable to avail of discounts when shopping in offline stores. There’s even measures to boost consumption in the tourism sector in Urumqi will give 50 thousands of consumer coupons that you can use when you visit seven tourist places in the city.
Similar measures have been taken in the city of Hangzhou (Eastern Zhejiang). It is planned to distribute electronic potrebiteley in the amount of 1.68 billion yuan ($238 million) to stimulate the consumption. As said the newspaper “people’s daily”, this program covers 6 million offline stores in the sphere of public catering and shopping.
And in the provinces of Jiangxi, Zhejiang and the city of Longnan (Gansu province), the local authorities suggested a 2.5-day leave in a week. Proponents of this idea believe that additional free time will contribute to consumption growth (especially in tourism). Although sound and voices who disagree with this innovation: is it appropriate to increase the time the weekend amid incurred because of the loss?
which is Considered the most powerful and richest country in the world, the United States suffered tremendous damage from the pandemic. Many American businesses have been forced to indefinitely stop their activities. Accordingly, millions of people in USA lost their jobs.
to soften the blow to the economy, in late March, authorities have taken unprecedented in the history of the United States financial aid package with a volume of $ 2 trillion.
the fact of all this state intervention in the economy in the US looks even outside the context of the particular circumstances of unusual.
“We went to bed, being America, and the next morning woke up looking like a social-democratic Europe – says Professor of the business school Rossa at University of Michigan Eric Gordon. We laughed over how Europe supports its disastrous steel and car companies, and when it’s time, we’ll beat it.”
All citizens with an annual income below $ 75 thousand authorities have promised to issue a check for $1200. Plus, this still provides for the payment of $ 500 per child. Also increased the size and duration of unemployment benefits.
For large companies has created the rescue Fund in the amount of half a trillion dollars. More than 350 billion allocated to support small and medium enterprises.
mid-sized Companies with number of employees from 500 to 10,000, promised loans at an interest rate not exceeding 2% per annum, while they do not need to repay the principal amount or interest within six months.
Businesses employing less than 500 people pledged loans directly to banks to cover more than dumesachnogo payroll and certain other operating expenses, the government pays the balance as long as the company is either not lay off workers or hire those whom they had previously dismissed.
Looks very impressive. But it was smooth on paper, Yes forgot about the ravines. For example, obstacles arose on the part of banks. With the exception of Bank of America banking institutions were reluctant to adopt the online application to receive the allocated funds.
in mid April the same $ 350 billion allocated to rescue of small and medium-sized businesses, came to an end. And not all need the company managed to obtain this support.
However, there seems to be arrived, the Senate approval of the new package of measures to address the economic impact of the pandemic, weighing in at $480 billion, a Large part of the money (320 billion) should go to a credit program for small and medium business not to give to grow unemployment. It is now up to the House of representatives, then their “good” should give the President. Trump, however, has expressed support for this aid package.
a Hand stretch and separate sectors of the American economy, caught in a difficult position. The government has decided to invest more than $ 60 billion to the aviation industry. This amount includes $ 25 billion in grants to the compensation of employees of passenger airlines and $4 billion for those working in the cargo airlines. It is considered that these measures will help to protect employees from dismissals, while the majority of aircraft are “laid up” on earth.
a Separate line in the United States is aid to agriculture, is also suffering from the effects of a pandemic and restrictive measures.
American farmers had to destroy their products because of the epidemic are unable to put them on time. The demand for some goods is also not add income to agriculture.
Direct payments to farmers and ranchers in the United States suffering from the consequences of a pandemic coronavirus, $ 16 billion Plus $3 billion the government promised to allocate for the purchase from farmers of their meat, dairy and agricultural products. This is purchased from agricultural products is also planned for helping the needy. And that’s not all – the US Department of agriculture is expected in the summer will receive an additional $14 billion for assistance to farms and ranches.
due to the introduction in Germany restrictive measures are severely affected almost all sectors of the economy, but the shock took over small businesses and individual entrepreneurs. Plenty of shops, restaurants, cafes, hairdressers, beauty salons, travel agencies were closed and the staff and owners were left without income. Atlost earnings, and many worked themselves photographers, musicians and other representatives of “free professions”.
In Germany, March 25, the Bundestag approved the largest in the history of the country anti-crisis program. Measures to rescue the economy involves stimulating lending to businesses, the acquisition of shares in companies, etc.
And as for the small business aid package includes a separate program at the national level with a volume of € 50 billion in support of micro-enterprises and self-employed. The money is to be taken from the adopted supplementary state budget of 156 billion euros.
the Affected micro-enterprises and self-employed promised to pay several thousand thousand euros and compensation of up to 67% of wages for incomplete working time. And freelancers applying for unemployment benefits will not be forced to find a new job.
the size of the financial investments depends on the size of companies. The enterprises employing up to five people, put the payment in the area of 9 thousand euros. There, where no more than 10 employees, you can count on a large amount (15 thousand euros). However, money (which is not a loan but a grant subsidy) is not distributed automatically to everyone. We still have to prove that the pandemic has caused problems, and that problems started after March 11.
Alas, in conditions when the government has to take serious steps for the sake of economy, is a place for speculators. There were crooks who launched a fake website, identical to the website of the Ministry of Finance of North Rhine-Westphalia, through which he stole data of firms and individual entrepreneurs to receive state subsidies affected by the coronavirus. The police believe that the scammers collect data of affected firms and freelancers, which are then used on this site, changing Bank information on their accounts. By the way, in this earth in addition to the program of the Federal government authorities gathered to pay up to 25 thousand euros to firms with up to 50 employees, if their revenue fell by at least 50% or restrictive measures had to be temporarily closed.
In additional measures to support business vary from one Federal land to another. In Baden-württemberg to companies that employ up to 50 employees, can pay up to 30 thousand euros, according to Deutsche Welle. And in Bavaria 30 thousand euros may request the company, numbering up to 250 people. In Brandenburg companies with staff up to 100 people you can count on 60 thousand euros.
And very relevant in light of the fact that people lose money, was the prohibition of landlords to terminate the leases with those tenants who were unable to regularly pay the rent. At least l��di may not worry too much about the roof over my head.
And families who lack Finance, the government has decided to provide more easy to obtain the children’s allowance: instead of checking the income for the last six months will be checked only income for the last month. Parents with decreasing income because of the need to care for their children have also promised help.
Saudi Arabia – to put it mildly, poor state. But she has a hard time in connection with the pandemic and the sharp drop in prices for “black gold”.
To prevent the dismissal of employees carrying the company’s losses, the king of Saudi Arabia Salman bin Abdulaziz al Saud announced that the government will cover part of the salaries in the private sector in those sectors which were most affected by coronavirus crisis.
the Monarch unveiled a plan to stimulate the economy over $ 9 billion riyals ($ 2.4 billion).
Special attention in Riyadh and paid to the measures of mass layoffs in the context of the pandemic. In accordance with the Royal decree, companies that are forced to lay off employees, can instead turn to the government to pay 60% of the salary of these workers for three months.
it is Expected that more than 1.2 million citizens will be eligible to receive payments, the monthly limit which is 9000 riyals ($2400) per person. After the three-month period, the Royal decree obliges the company to resume the wages of their employees.
In March, the Central Bank of the Kingdom launched economic package in the amount of 120 billion rials ($32 billion), including $13.3 billion, which should help small and medium enterprises to stay afloat. Assistance to businesses also includes deferred tax payments and exemptions from various government charges and fees.
“Some of the budget allocations will be revised and redistributed among the sectors most in need in the current situation, including the allocation of additional funds for health care as needed, – reads the statement of the Minister of Finance Mohammed al-Jadaan. – There was also passed an emergency budget to cover any expenses that may occur during the development of this global crisis”.