Direct cash payments will help improve financial security, boost consumer spending and accelerate recovery, according to a letter from a group of economists urging US policymakers to continue to provide direct cash payments to American citizens until the economy becomes stronger and more stable..
Incentive cash payments should be made automatically based on certain economic indicators, such as unemployment rates, until there is sufficient evidence that the economy is recovering, says an open letter written by a group of mostly left-wing economists., The Economic Security Project and The Justice Collaborative.
«The first round of economic impact payments was a lifeline that helped some survive for weeks», – economists write. «Even after businesses start to reopen and jobs begin to recover, there will be a significant economic downturn and demand will continue to lag unless people have the money to spend.».
The letter was signed by 153 economists, including Jason Furman, who chaired the Obama administration’s Council of Economic Advisers; Claudia Sahm, former Fed economist; Darrick Hamilton from the Institute the study of race and ethnicity in Kirvan; Indivar Dutta-Gupta, co-executive director of the Georgetown Center on Poverty and Inequality. Some of the signatories provide campaign advisory services to the alleged Democratic presidential candidate Joe Biden.
The $ 2.3 trillion cash incentive payments launched in April under the CARES Act helped raise spending for low-income households faster than for higher-income households, with most of the cash spent on basic necessities, according to Harvard University’s Opportunity Insights.
Approved Congressional payments of additional funds $ 600 in addition to weekly unemployment benefits expire at the end of the month, putting unemployed Americans at risk of serious money problems while jobs are still severely constrained.
Congress lawmakers are on a two-week hiatus and are likely to face pressure to make decisions when they meet again in late July..