In a Wednesday evening Oval Office address, President Donald Trump said he was working with Congress to provide tax breaks and loans to industries and small businesses affected by the coronavirus pandemic.
The plan could help San Diego in some ways, but falls short of providing immediate relief to the rank and file workers, according to University of San Diego economic professor Alan Gin.
President Trump wants to shift $50 million to the small businesses administration for low interest loans, but Grin questions whether small businesses with uncertain futures would even apply.
"You need to get more money into people's hands right now. I think that [Trump’s plan] is an indirect way,” Gin said.
The president also issued 30-day travel restrictions on parts of Europe, but since the tourism and convention industry is the fuel in San Diego's economic engine, Gin said the ban could do more harm than good.
“It was designed to prevent new cases from coming in, but I think it’s spreading rapidly here [in the U.S]."
But if Trump’s tax deferment plans for affected industries include airlines and hotels, Gin believes San Diego could benefit. He just doesn’t think it will come fast enough.
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“There is a lot more that needs to be done," he said.
If the president wants to subsidize this medical emergency and help prevent the spread of the disease, Gin said its sick day benefits that are in short supply.
“People feel the need to go to work even if they are sick because they have no other source of income," he said.
Trump is asking Congress to provide Americans payroll tax relief as well, but Gin said that would only benefit top earners and not the working-class community.
