It’s not just progressives taking issue. Peter Navarro, the White House economic adviser, also expressed displeasure about the lack of stimulus checks. Navarro told Fox Business the $908 billion package is “about two months late and a trillion dollars short.”
Missouri GOP Senator Josh Hawley even said Monday that he told President Donald Trump to veto any relief bill that doesn’t include direct payments.
“Don’t vote against it. A lot of people need these benefits. Leaving out stimulus checks is a sensible compromise,” said Bruce Meyer, an economist at the University of Chicago who studied the impact of the first round of stimulus checks.
Stimulus checks might not be that stimulative
The bipartisan package being negotiated in Congress would help because it includes forgivable loans to small businesses, extra funding to state and local governments to help with distributing vaccines and an extension of moratoriums on evictions. Crucially, it would provide $300 per week of enhanced federal unemployment benefits and extend expiring unemployment programs for gig workers and those out of work for more than 26 weeks.
Meyer said these unemployment programs are a more targeted way to help those who are truly in need.
“Those who had their hours cut or lost their jobs are the ones hurting, not the ones who still have their jobs,” said Meyer.
The worry is that another round of broad stimulus checks might not be that stimulative.
“People will just save it and not spend it,” said Gus Faucher, chief economist at PNC.
Faucher said that more targeted stimulus checks to lower-income Americans could be helpful, though it would also slow the negotiations down.
“The problem is the more complexity you raise, the more difficult it is to get the money out quickly. And to some extent, that defeats the purpose,” Faucher said.
David Kelly, chief global strategist at JPMorgan Funds, said the US economy simply “does not…
Go to the news source: Economists to Bernie Sanders: Don’t kill the relief bill over stimulus checks