3 reasons Americans need more federal aid
On Friday, he’s set to sign additional executive orders providing more assistance to working families.
1. The economy is still getting worse
Even though a majority of higher-wage workers saw their jobs return by the summer, the unemployment rate for low-wage workers remains stubbornly high.
2. Things could get even worse before they get better
The growing number of Covid cases and deaths, as well as renewed local lockdown measures, are making it harder for businesses to stay afloat.
The number of small businesses open and operating is down nearly 30% compared with pre-pandemic levels, continuing to fall throughout the autumn.
Winter weather is making it harder for businesses like restaurants to attract customers to outdoor patios.
And economists warn that more jobs could be lost in the coming months, despite the vaccine rollout beginning.
3. Traditional stimulus relief won’t work during a pandemic
Traditional stimulus programs like one-time direct payments or tax credits aren’t as effective when the recession is caused by a public health crisis, said John Friedman, an economics professor at Brown University and a co-director at Opportunity Insights.
People still won’t go out to eat or spend money on other entertainment if they don’t feel safe, for example, no matter how much money is in their bank accounts — and that also means they aren’t buying as many new clothes or other items as they might otherwise.
“Instead, we need to help those hardest-hit by the pandemic get through the next six to nine months until this public health crisis passes. Then we can get the economy going again,” Friedman said.
He pointed to enhanced unemployment aid, food stamp benefits and rental assistance as programs that can provide a stopgap for people right now.
CNN’s Anneken Tappe contributed to this report.
