Economists Push for Another Round of Stimulus Checks

Economists are calling on lawmakers to approve more direct payments to Americans amid the coronavirus pandemic, The Hill reports.

More than 125 economists signed a letter asking lawmakers to support issuing another stimulus check as a way to keep Americans out of poverty and to assist with the economic recovery.

“We urge policymakers to use all the tools at their disposal to revitalize the economy, including direct cash payments, which are one of the quickest, most equitable, and most effective ways to get families and the economy back on track,” the open letter states.

The letter was organized by the Economic Security Project and signed by economists including Jason Furman, former chairman of the Council of Economic Advisers during President Barack Obama’s administration; Alan Blinder, who served as vice chairman of the Federal Reserve board during former President Bill Clinton’s administration; and Claudia Sahm, a former economist at the Fed.

Most Americans received one direct payment under the $2.2 trillion CARES Act. Now, economists are calling for another. The first stimulus provided a max payment of $1,200 per adult and $500 per child.

Lawmakers have been divided on passing another relief package. The biggest hang up is how much the bill should cost. Democrats are pushing for a large number while Republicans want a scaled back package.

In the letter, economists note that low-wage earners, women, and Black workers have been hit the hardest. They say a stimulus check would help millions of Americans, including people who don’t qualify for unemployment benefits.

“Stimulus checks have been an essential tool to keep the number of people in poverty from going even higher,” the economists wrote.

They also note that the payments will encourage and increase consumer spending, which will likely help the economy recover faster. They also expressed support for unemployment benefits, aid to state and local governments, and funding for child care in the letter.

“The direct cash payments in the CARES Act boosted the economy by increasing spending at all income levels, and the most among low-income people,” they wrote. “Direct checks, especially if targeted to the bottom half of households, would ensure those struggling the most, particularly Black, Latinx, and Native American families, aren’t left behind.”

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