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Economic expert: Americans will eventually pay, in some form, for stimulus aid

Economic expert: Americans will eventually pay, in some form, for stimulus aid
Economic expert: Americans will eventually pay, in some form, for stimulus aid
Economic expert: Americans will eventually pay, in some form, for stimulus aid
Posted at 1:49 PM, May 13, 2020
and last updated 2020-05-13 13:49:12-04

WASHINGTON, D.C. – Unemployment in the United States now reaches well above 30 million people, and with it, historic levels of desperation.

"We haven't gotten paycheck in six weeks; we haven't gotten unemployment,” said Marsha Miller, who co-owns Headlines Salon and Spa. “What are we supposed to do?"

Situations like that make it hard for many to think beyond this week, let alone this year. Some are, though.

“We need to have a longer-term plan,” said Jim Angel, a professor of finance at McDonough School of Business at Georgetown University.

He said plans like the Paycheck Protection Program for small businesses and the $1,200 stimulus checks many workers got may seem like free money to those getting the help, but it’s not.

“This is an election year and with a closely fought battle coming our way, it's no surprise that the politicians are saying, ‘let's give everybody free money,’” Angel said. “The question is: who's going to pay for this?”

He has an answer, but you may not like it.

“When the government gives you money, it's nothing more than a temporary loan,” Angel said. “Don't let anybody kid you. What the government gives you with one hand, they take with the other.”

Congress is now looking at a potential fifth coronavirus-related stimulus package. This one could be worth $800 billion and would benefit smaller cities and communities that didn’t get financial help in previous bills, like the $2 trillion CARES Act.

Eventually, all that stimulus money will need to be made up somewhere down the line. That could come in the form of deep spending cuts on federal programs and the potential for raising taxes in the coming years.

“We're all going to pay for all the money that's being spent right now,” Angel said. “It's just a question of who, what, when, where and how.”

Those questions are temporarily on hold for now, though, amid today’s widespread financial pain.

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Reopening Ohio
Gov. Mike DeWine and the State of Ohio have established a plan to begin reopening Ohio businesses starting May 1. Below is a timeline of the businesses allowed to reopen.

May 1: Medical care – non-essential surgeries and procedures that do not require an overnight stay will be allowed beginning May 1.
May 4: Manufacturing, distribution and construction businesses that were ordered to cease activities may reopen on May 4, as well as general office environments.
May 12: Retail establishments and facilities will be allowed to reopen on May 12.
May 15: Salons, barbershops, day spas, tanning facilities, massage parlors, tattoo parlors and piercing businesses. Restaurants will be allowed to serve patrons on outdoor patios. More details here.
May 21: Restaurants and bars will be allowed to reopen for dine-in service. Read more here. Campgrounds will be allowed to reopen. Read more here.
May 22: Horse racing will be allowed to resume, with no spectators. Casinos and Racinos are not included in the reopening. Read more here.
May 26: Gyms, fitness centers, regulated pools, recreation centers and studios will be allowed to reopen, with new requirements. Non-contact and limited-contact sports leagues, such as golf, baseball and tennis will be allowed to resume. BMVs across Ohio will reopen, but government officials encourage citizens to utilize the BMVs online services when possible. Read more here.
May 31: Day care centers will be able to reopen in Ohio. Read more about the plan to reopen day cares here. Day camps and summer camps will also be allowed to operate. Details on that here.

While these announced reopenings encompass the majority of the businesses, agencies and events closed and canceled by the state's orders, the governor has not yet made an annoucements on when K-12 schools in the state will reopen, nor when places of public amusement, such as theme parks, gambling businesses, skating rinks, movie theaters, and others will be allowed to reopen. See a full list of indoor and outdoor places that remain closed here.

Click here for more details on the state's "Responsible RestartOhio" plan.