Second Stimulus: Leading U.S. Economists Urge Lawmakers To Issue Another $ 1,200 COVID-19 Relief Payment

Between a White House in transition and an increase in COVID-19 cases in the United States, dozens of top economists across the country are pressuring lawmakers in Washington to act quickly by passing a second stimulus bill to send $ 1200 in payments to tens of millions of Americans.

On Monday, an open letter signed by more than 125 economists was published by the Economic Security Project, a group examining the feasibility of a guaranteed income.

The letter cites lessons learned from the 2009 stimulus bill and the recent CARES law as reasons to issue new rounds of payments, ideally until the economy recovers.

The above video is taken from a September 2020 report covering advice from financial advisers on allocating stimulus funds during negotiations for a second round of payments.

“Recurring direct payments will help families meet basic needs, boost national and local economies, and accelerate recovery, and should be combined with other valuable programs such as unemployment benefits, state and local governments, stronger SNAP benefits, strong funding for child care and more, ”the letter said.

At least half of families have been hit by lost wages due to a pandemic, according to the Economic Security Project, with low incomes being the hardest hit women and black workers.

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The group also cites an analysis by the Urban Institute which suggests that sending two more rounds of checks could keep 14 million people out of poverty.

The 127 economic and financial experts and scholars to sign the letter include Jason Furman, who was a senior economist in the Obama White House, and Alan Blinder, a former vice chairman of the Federal Reserve board. In addition, Dietrich Vollrath, professor of economics at the University of Houston, is among the signatories, however, the letter indicates that he and many others signed the letter independently of their institutions.

While some may look forward to the next round of stimulus funds with the new Biden administration, the likelihood that the current Congress will act by passing it is low.

Lawmakers are expected to be back in session for three weeks after their Thanksgiving recess, and with post-election tension still high between the Democratic-led House and the GOP-held White House and Senate, a Bill No. has not passed the negotiating table. .

Democrats proposed a $ 2.4 trillion “HEROES Act”, which has been described as a non-starter by Republicans.

SEE ALSO: How to Make the Most of Additional Stimulus Checks