WHAT YOU NEED TO KNOW:
- A group of more than a hundred economists called for another round of coronavirus stimulus aid, urging Congress to reach a deal soon.
- The experts explain that more cash aids to American families would help boost the economy, which continues to slump since the pandemic started.
- According to a study from the University of Chicago, millions of Americans have fallen to the verge of poverty since May.
At least 127 economists called out Congress to send Americans another batch of COVID1-19 economic aid amidst delayed stimulus discussions and millions facing unemployment benefits expiration.
The statement, signed by economists, urges lawmakers to utilize all means necessary to invigorate the nation’s economy, such as direct cash disbursements, which they believe are the fastest, most reasonable, and best ways to help families and revive the economy.
The CARES Act stipulates that a stimulus aid of up to $1,200, with an additional $500 for every child dependent, was distributed to about 160 million Americans since April.
The group of experts, including former President Obama’s chief economist, Jason Furman, said on the statement that another set of stimulus aid would help lift local and state economy, aside from covering the basic requirements of every family.
The economists also recommended that the second round of aids be combined with assistance packages, namely unemployment supports, assistance to local and state governments, more substantial SNAP benefits, and child care subsidies.
Suppose a deal is not pushed within this year, around 12 million Americans will no longer receive unemployment aids once both the Pandemic Emergency Unemployment Compensation (PEUC) and Pandemic Unemployment Assistance (PUA) programs end.
During the campaign period, the Democrats and Republicans almost dealt with House Speaker Nancy Pelosi’s, D-CA, updated $2.2 trillion budget proposals and the nearly $1.9 trillion version by the White House. Senate
Republicans, however, appeared to push for a much smaller amount.
Mitch McConnell, R-KY, Senate Majority Leader, proposes a $500 billion package, relatively lower from both parties’ deals. His offer will not cover another doesn’t include the additional round of stimulus payments, while the Democratic bid consists of another set comparable to what the CARES Act had.
A transition spokesperson for Joe Biden confirms that the president-elect supports the version proposed by the Democrats.
During a presser last week, Biden said that the Congress should reach a deal for the COVID relief package similar to the HEROES Act that the chamber pushed on the past six months.
An analysis from the University of Chicago reported that at least a million more Americans dropped below the poverty threshold by October only. Since May, no less than 7 million Americans have are now under poverty.
The economists reiterated that having stimulus aids helps avoid more numbers of people falling to the poverty line.