Yale School of Management

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Unemployment Insurance and Short-Time Compensation in the US and abroad

June 11, 2020

To address the COVID-19 pandemic, governments around the world recently placed restrictions on business activities, in many cases ordering non-essential businesses to close and workers to stay at home. In many countries this led to a rapid decline in labor demand. In the US the Bureau of Labor Statistics (BLS) reported the highest unemployment rate since the Great Depression in April with a national rate of 14.7, an 11 percentage point increase from the historical low of 3.5 percent reported two months before. Nevada reported the highest rate in the country at 28.2 percent, up from 6.3 percent in March, while the lowest rate was reported in Connecticut at 7.9 percent, still more than a twofold increase from 3.7 percent reported in March. In May, the labor market began to show the first signs of recovery as  some states reopened their economies; the unemployment rate dropped to 13.3 percent.

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Federal Reserve Amends Main Street Lending Program

June 10, 2020

On June 8, the Federal Reserve announced significant changes to the Main Street Lending Program, a new facility designed to support lending to small and medium-sized businesses. The changes include decreasing the minimum loan amount for some loans, increasing the maximum loan amount, amending the loan repayment schedule, and extending the loan term. 

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Usage of the Defense Production Act throughout history and to combat COVID-19

June 3, 2020

As the Federal Reserve and the Treasury launch programs to provide relief to individuals and businesses affected by the COVID-19 crisis, President Donald Trump has been using a tool that gives him considerable discretionary authority over private corporations: the Defense Production Act (DPA).

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HEROES Act would provide $3 trillion in additional benefits but unlikely to progress

June 2, 2020

The $3 trillion Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act , which the House of Representatives passed on May 15, is the fourth and largest legislative rescue package proposed by the US Congress in response to the COVID-19 pandemic. It would help to mitigate the economic impact of continued shelter-in-place orders and soaring unemployment rates.

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