Trump's Payroll Tax Proposal Would Be a Gut Punch to Social Security

It's truly incredible how quickly our perspective can change in a matter of weeks.

A month ago, coronavirus disease 2019 (COVID-19) appeared serious for those who'd tested positive for the illness but wasn't viewed as a potential disruptor of our lives. Today, however, mitigation efforts in the United States to combat the spread of the coronavirus has touched nearly everyone, whether through cancellations of sporting events, schools, and concerts or panic-buying at local grocery stores.

Shocks to the U.S. economy occur from time to time, and the Federal Reserve and federal government are often called in to "save the day." The Fed handles monetary policy, which includes reducing its fed funds target rate during periods of panic in order to reduce borrowing costs and encourage lending. Meanwhile, the federal government handles fiscal policy and can authorize tax measures that could ultimately put more money into consumers' pockets. Remember, the U.S. generates 70% of its gross domestic product (GDP) from consumption.

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Source Fool.com