A trillion dollars against the crisis

Millions of Americans lost their jobs in the corona crisis and rely on government support. President Trump's party wants to launch a new aid program - while cutting unemployment benefits.

Since the beginning of the corona crisis in the United States, 20 million people have lost their jobs, and many have since been dependent on social benefits. President Donald Trump's Republican Party has now unveiled its proposal for another $ 1 trillion corona bailout package.

"The American people need more help," said Republican Senate majority leader Mitch McConnell. The support must be "carefully tailored", while the country is with one foot in the pandemic and the other foot in the recovery of the economy.

$ 1200 direct payment - for "most"
Among other things, "most" US citizens will once again receive a $ 1200 direct payment, said Republican Senator Chuck Grassley. At the same time, weekly unemployment benefits should be reduced to $ 200.

The $ 600 end-of-month support that job seekers are currently receiving in addition to state aid is causing people to rest, Grassley said: "People won't work. And what this country are more workers. "

This is a central demand of many Republicans: people need an incentive to go back to work. Flat-rate subsidies should no longer exist, but wage replacement payments of 70 percent.

If you get too much help, rest, says Senator Grassley.

Democrats are demanding more money
But even within the party of President Trump, this draft is controversial. And the time to reach an agreement with the Democrats is scarce. Federal unemployment benefits will expire on Friday. The new package, however, needs the approval of the Democrats because they have the majority in the House of Representatives. However, they require significantly higher expenses to compensate for the effects of the corona crisis. In May, the Democrats presented a package worth $ 3.7 trillion, but failed.

The corona pandemic has hit the US economy hard. Already approved stimulus programs are expected to pump nearly $ 3 trillion into the US economy - more than ten percent of annual economic output.

However, in view of the increasing number of infections, an end to the crisis is not in sight. More than four million Americans have been infected with the corona virus, and almost 147,000 people have died of Covid-19 so far.