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A note from EPI’s Kirstyn Flood: The U.S. lost a lifelong champion for equality and racial justice with the passing of Congressman John Lewis, whose work will be remembered as broadening shared prosperity and economic opportunity for all. EPI experts weigh in on what it will take to extend economic opportunities to working people during today’s economic crisis, and why deficit spending is essential to mitigate further economic shock.
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The economic shock of the coronavirus has been as sudden and jarring as any in U.S. history. The correct policy response to a shock like the coronavirus is to push deficits even larger than they would go on their own by providing expansions to relief and recovery efforts. As always, there are some who seem more concerned about the rise in federal budget deficits and public debt than by the rise in joblessness and losses of income generated by the shock. But prioritizing the restraint of debt in coming years over the restoration of pre-crisis unemployment rates is bad economics. If baseless fears about the effects of adding to debt block an effective response to joblessness and income losses, then it will cause catastrophic economic losses and human misery. This FAQ attempts to answer some of the many questions we hear about the deficit and debt in light of the current economic crisis. Read the fact sheet »
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Debt and deficits in the coronavirus recovery
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Any effective response to the coronavirus pandemic will involve spending that increases the national debt. Should we be concerned? The U.S. should spend smart—not avoid spending. Economist Josh Bivens, research director at EPI, explains why the U.S. should not let scare tactics about debt and deficits get in the way of an effective pandemic response. Watch the video »
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It has been apparent for years that the United States could benefit enormously from a large public investment in care work—including early child care education and elder care. A substantial investment in children would lead to a more productive workforce in the future, spurring large income gains. Investments in seniors would ensure that a decent and dignified retirement was available to all, a commitment that the United States has so far failed to sustain. Tuesday morning, the Biden campaign released a plan calling for a broad set of investments in child and elder care. Their plan would invest $775 billion over the next decade, a large increase over current levels. The Biden campaign’s commitment to making these investments is most welcome. Read the blog post »
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Two weeks ago, 2.4 million workers applied for unemployment insurance benefits. It was the 17th week in a row that unemployment claims were more than twice the worst week of the Great Recession. Of the 2.4 million workers who applied for UI, 1.5 million applied for regular state unemployment insurance and 0.9 million applied for Pandemic Unemployment Assistance (PUA). The across-the-board $600 increase in weekly unemployment benefits is set to expire this week. This will cause hardship by forcing millions to drastically cut their spending and will exacerbate racial inequality. Many are talking about the potential work disincentive of the extra $600, since the additional payment means many people have higher income on unemployment insurance than they did in their prior job. If policymakers really are worried about the disincentive effect of the extra $600, they should address that issue in another way. Instead they could, for example, let people keep some of their UI when they go back to work. Read the blog post »
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EPI hosted a panel of experts on why policy must be changed to reverse the nation’s culture of anti-Blackness and the economic inequality surrounding it. EPI Distinguished Fellow Richard Rothstein discussed his book, The Color of Law, followed by a discussion on reshaping the country into one that values Black lives and bolsters economic opportunities for all. Watch the video »
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EPI hosted a bipartisan panel on June 1 of the nation’s top economists to discuss the urgent need for federal aid for state and local public services—including public safety, health, and education—to mitigate the economic harm caused by the coronavirus pandemic. The group of panelists, moderated by EPI President Thea Lee, took media questions about the state of our economy and discussed the importance of adequate aid to individuals, businesses, and state and local public services to speed and sustain a robust recovery. Watch the video »
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COVID-19 is acting as a magnifying glass to the deep-seated systemic inequities ever-present in the United States. EPI hosted a webinar on June 1 with the Insight Center; the Women’s Institute for Science, Equity and Race; the Mississippi Workers’ Center for Human Rights; and Economic Education. The webinar included findings from EPI’s new report on Black workers, followed by a discussion on strategies to build an inclusive economy that centers on the needs of Black and Brown women and their communities. Watch the video »
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EPI hosted authors William A. Darity Jr. and A. Kirsten Mullen on May 27 for a discussion of From Here to Equality: Reparations for Black Americans in the Twenty-First Century. Through their assessment of the intergenerational effects of white supremacy on Black economic well-being, Darity and Mullen confront the injustices of slavery, Jim Crow, and modern-day discrimination to make the most comprehensive case to date for economic reparations for U.S. descendants of slavery. EPI economist Valerie Wilson moderated the discussion. Watch the video »
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Representative John Lewis, a son of sharecroppers and an apostle of nonviolence who was bloodied at Selma and across the Jim Crow South in the historic struggle for racial equality, and who then carried a mantle of moral authority into Congress, died on Friday. He was 80. Read more »
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It’s bad economics to fear deficits more than mass joblessness
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