Stimulus Money Should Have Gone to the Jobless, Economists Say

Many experts said a truly stimulative package would have earmarked the payments for those who need it most — the unemployed.

“We know where the pockets of need are,” said Greg Daco, chief economist at Oxford Economics. “Putting it there would be a much more efficient use of the stimulus.”

And because the money will immediately be put to work — the jobless don’t have the luxury of saving it — it would also have a much bigger impact on the overall economy, through what experts refer to as the multiplier effect. In essence, each dollar given to a person in need is likely to benefit the economy more because it would be used to pay for, say, groceries or rent.

“Providing $2,400 to a family of four in the same financial situation as they were at the end of 2019 doesn’t do much to boost the overall economy right now,” Mr. Daco said. “It’s not whether it’s a positive or not. It’s their potency that’s in question.”

Individuals with an adjusted gross income in 2019 of up to $75,000 will receive the $600 payment, and couples earning up to $150,000 a year will get twice that amount. There is also a $600 payment for each child in families that meet those income requirements. People making more than those limits will receive partial payments up to certain income thresholds.

A more effective approach, experts say, would have raised unemployment insurance benefits to the jobless by $600 a week, matching the supplement under the stimulus package Congress passed last spring, rather than the $300 weekly subsidy the new legislation provides. Democrats had pushed for larger payments to the jobless and included it in legislation that passed the House, which they control. But the measure met stiff resistance from Republicans, who control the Senate, and was not included in the final compromise bill.

The money could also have been used to extend two key unemployment programs for much longer than the 11 weeks provided for in the new bill. The current extension runs only until mid-March, well before mass vaccinations are expected later in the spring and summer and the economy begins to return to normal.

Comments

Wray: FBI deemed Jan. 6 attack domestic terrorism

FBI Director Christopher Wray said Tuesday that officials have classified the deadly Jan. 6 attack on the U.S. Capitol by former President Trump Donald TrumpProsecutors focus Trump Organization probe on company's financial officer: report WHO official says it's 'premature' to think pandemic will be over by end of year Romney released from hospital after fall over the weekend MORE's supporters as domestic terrorism. "That attack, that siege, was criminal behavior, plain and simple, and it’s behavior that we, the FBI, view as domestic terrorism," Wray told lawmakers on the Senate Judiciary Committee. Wray said the FBI has received more than 270,000 tips from Americans that have helped the bureau identify the numerous people who allegedly participated in the attack. ADVERTISEMENT "Citizens from around the country have sent us more than 270,000 digital media tips. Some have even taken the painful step of turning in their friends or their family members,” ...

Matt Gaetz's ex-girlfriend to cooperate with federal authorities in sex trafficking investigation

Washington (CNN) Federal authorities investigating alleged sex trafficking by GOP Rep. Matt Gaetz have secured the cooperation of the congressman's ex-girlfriend, according to people familiar with the matter. The woman, a former Capitol Hill staffer, is seen as a critical witness, as she has been linked to Gaetz as far back as the summer of 2017, a period of time that has emerged as a key window of scrutiny for investigators. She can also help investigators understand the relevance of hundreds of transactions they have obtained records of, including those involving alleged payments for sex, the sources said. News of the woman's willingness to talk, which has not been previously reported, comes just days after the Justice Department formally entered into a plea agreement with Joel Greenberg, a one-time close friend of Gaetz whose entanglement with young women first drew the congressman onto investigators' radar. CNN reported last week that investigators were pressing for the...

Biden Wants to Hire 87,000 Additional IRS Agents to Go After Wealthy Tax Dodgers

The Biden administration is proposing hiring 87,000 new workers for the Internal Revenue Service (IRS), effectively doubling the agency’s size, as part of a plan to beef up enforcement efforts and find billions of dollars in tax revenues that go uncollected each year. Enforcement efforts would primarily target individuals and corporations with higher incomes and profits, the administration has suggested. The hiring, which would be part of President Joe Biden’s overall $80 billion spending plan to increase enforcement efforts at the IRS, would not happen all at once. Instead, it would be carried out in phases, with a 15 percent growth in employment at the agency per year until that 87,000 hiring benchmark is reached. The move would help recoup (and go beyond) some of the employment losses the agency has seen over the past decade, as the IRS has lost more than 33,000 workers over the past decade. The drop in employment at the agency has resulted in fewer audits, particularly for filers w...

Politics Now - USA

Search This Blog