Was the Paycheck Protection Program (PPP) a Feasible Caution for Local Business Economies?
Hi,
there are several sources i have attached below.
1. The rubric. It is a very detailed rubric and it includes content that required in the essay and the style of the essay, please read it carefully and write the essay accordingly. Please write full two pages please, and it is requirement for the assignment.
2. There are 3 example essays from previous years that professor gave us, you can understand the main format and idea of the essay. But this year topic is around how a specific aspect of the covid-19 pandemic can be understood using the ideas we have covered in this course (Public Economics).
3. I also attached a zip file for our lecture notes for the class and if you need more content, you can contact me asap. But please be related to public econ topics, because it is a public econ class.
Write a short essay that explains how a specific aspect of the covid 19 pandemic can be understood using the ideas we have covered in this course. This assignment is intentionally open-ended; you may pick any aspect of the pandemic that interests you and where you see a clear connection to public economics. You can analyze a general topic – for example, in class we discussed how the externalities of disease contagion provide a rationale for governments to regulate economic activity during a pandemic. Or, you can focus on a narrower policy issue – for example, a specific bill or policy debate in your home country. You are free to use news articles, academic articles, or any other reliable information sources to generate ideas and support your arguments. You can also make your argument based on abstract reasoning. The key requirement is that you explicitly connect the topic you’ve chosen to the concepts we’ve covered in class. This essay will be graded not only based on effort, but also on whether your writing is clear and your reasoning is precise and correct. Furthermore, you must provide original analysis; it is not sufficient to repeat points about the pandemic that were already made in lecture. Here are some additional guidelines: Content • Make an argument! Simply describing specific policies or facts is not enough; you must make an economic argument based on them. • Originality: do not simply restate arguments and facts from lecture. I want to hear about your own ideas. Offer a new topic, idea, or argument. • Correctness: it is essential to use terms from class correctly. Misusing a term or concept will be heavily penalized. • Support your claims. Positive claims require evidence or at least reasoning; normative claims also require a statement of the ethical assumptions underlying them. Style • Use correct spelling, grammar, and syntax. But your writing should not be difficult to understand. • Organization: focus on one or two key economic arguments or ideas, make those arguments early in the essay, and present arguments to support your claims in a logical way. For each sentence, ask yourself whether it should follow the sentence which precedes it and whether it advances your argument. • Be concise: the essay is just two page. The goal is to advance an economic argument; every sentence in your essay should work towards this goal. Do not waste space on background or commentary that is not essential. 1
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Was the Paycheck Protection Program (PPP) a feasible caution for local business economies?
The sudden economic shocks from the Covid-19 pandemic prompted the government’s equally fast policy reaction to protect its people from economic shocks. One of the mechanisms that the U.S. administration sought to combat the short-term crisis facing small businesses was the Paycheck Protection Program (PPP) (Garaja et al. 2). This approach purposed to temper the pandemic’s damages by offering the businesses forgivable loans to ensure they maintain their liquidity and eliminate job cuts to protect the American people’s incomes. The lecture mentioned that income and employment status are fundamental components determining many Americans’ vulnerability and purchasing power. Moreover, the taxation lecture highlighted income tax as a primary source of the American government’s revenue. As a result, the presence of this program during the pandemic could have far-reaching positive effects on both the citizens and the government.
PPP was a massive initiative deploying over $500 billion by the fourth month of its passage (Garaja et al. 2). Although the program’s conceptualization sought to protect jobs in vulnerable positions after the Covid-19 eruption, it has received conflicting criticism from different quarters. For instance, a section of economists agrees that targeting businesses with 500 or fewer workers allowed 47% of the private sector firms to benefit from this financial reprieve (Hubbard and Strain). Evidence demonstrates that companies eligible for the PPP reduced their risks drastically since the loans eliminated their likelihood of collapsing, unlike their ineligible counterparts. Moreover, they managed to pay their workers on time and maintain their employment status, unlike the larger companies that had to downsize (Yarmosky and Chakrabarti). In some way, this allocation by the government could be advancing an element of the principle of welfare economics because its central objective was to protect the small businesses from the covid-19 freeze.
However, other critics disagree that the implementation of PPP met its desired objectives. Although it could have succeeded in withstanding the sudden slump in revenue after the economic shutdowns and retaining the employment of the workforce, concerns are replete that the rescued jobs are far too few compared to the size of the program (Haimeri). For instance, while projections anticipated approximately 30 million, studies estimate that the efforts only saved about 2.3 million jobs in two months (Klein and Smith). I agree with the sentiments of many economists that the approach could have missed the principle of equitable distribution because a significant proportion of the gra...