- A group of more than 125 economists is calling for another round of
stimulus checks to keep Americans out of poverty during theCOVID-19 pandemic. - Signatories of an open letter included Jason Furman, President Barack Obama's top economic advisor, Claudia Sahm, a former Federal Reserve
economist , and Alan Blinder, a former Fed vice chairman. - "Unless policymakers act quickly to respond to the crisis at the scale necessary, we risk the damage to the
economy lasting much longer than necessary," the economists said in the letter. - Democrats and Republicans agree that a stimulus package needs to be passed — but they disagree on the amount of money needed to support people and businesses, delaying a deal.
More than 125 economists from major institutions are urging
By early June, the federal government had sent nearly 160 million stimulus checks as part of the $2.2 trillion CARES Act enacted in March. Individuals received up to $1,200 and couples received up to $2,400, plus an additional $500 for each dependent child.
This week, 127 economists signed an open letter urging US policymakers to send another round of payments. Signatories included Jason Furman, the top economic advisor to President Barack Obama, Claudia Sahm, a former Federal Reserve economist, and Alan Blinder, a former Fed vice chairman.
Democrats and Republicans agree that a stimulus package needs to be passed — but they disagree on the amount of money needed to support people and businesses, delaying a deal.
The Economic Security Project, which advocates a guaranteed income for people, organized the open letter.
"We urge policymakers to use all the tools at their disposal to revitalize the economy, including direct cash payments, which are one of the quickest, most equitable, and most effective ways to get families and the economy back on track," the letter said.
It added: "Unless policymakers act quickly to respond to the crisis at the scale necessary, we risk the damage to the economy lasting much longer than necessary, particularly for those at the bottom who have been hit the hardest."
The economists described the stimulus checks as "an essential tool" for keeping lots of Americans out of poverty.
They also said "low-wage earners, women, and Black workers" had been affected the most by COVID-19.
"While the economy continues on the path to recovery, it's critical that we quickly implement a robust stimulus to help promote a sustained and racially equitable recovery and help families and businesses get back on their feet," the economists wrote.
They cited research from the Urban Institute indicating that more rounds of checks would help keep as many as 14 million people out of poverty.
Republicans are pressing for a $500 billion stimulus plan that Democrats have twice rejected. Democrats want a multitrillion-dollar stimulus package including $1,200 stimulus checks, $600 federal unemployment benefits, funds for virus testing and contact tracing, and state aid.
President-elect Joe Biden has called on Congress to pass a $3 trillion coronavirus relief deal. But that was stopped in the Senate by Majority Leader Mitch McConnell, who deemed it too expensive.
House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer recently sent a letter telling McConnell to resume negotiations over another relief package. On Friday, Pelosi, Schumer, and Biden echoed calls for Congress to pass another relief plan before the end of the so-called lame-duck session.