What’s happening: A growing chorus of liberal and conservative economists are lining up behind a proposal published in the Wall Street Journal by Harvard professor Jason Furman, who chaired the Council of Economic Advisers (CEA) under President Obama, that calls for direct government payments to households.
What it means: Furman proposes Congress pass a “one-time payment of $1,000 to every adult who is a U.S. citizen or a taxpaying U.S. resident, and $500 to every child who meets the same criteria.”
He adds that the law “should also specify that the payments would continue in 2021 and beyond if the unemployment rate rises to 5.5% and remains there or higher. Hopefully this will not happen, but if it does, the money will be needed.”
“The comprehensive and dynamic response should also include extensions of unemployment insurance and increased Medicaid matching for states. These would be passed pre-emptively, so that they could trigger automatically in states where unemployment rates rise.”