Business & Investment

Former Obama economist questions the wisdom of stimulus checking

According to a former Obama administration economist, the widely-received stimulus check included in the recent economic bailout package signed by President Donald Trump will make the most of taxpayers’ dollars. is not.

Christina Romer, a professor of economics at the University of California, said the first stimulus check sent last year was not always fair and did not help the most injured sector, saying “I didn’t do much.” Berkeley. She chaired then-President Barack Obama’s Economic Advisory Committee and helped design the government’s response to the 2008 financial crisis.

Most people said they would save the stimulus or use them to pay off their debts.

“At least one-time stimulus payments are one of the biggest factors, and it’s a shame that we’re back with the latest financial package,” Rommer said in a panel discussion at the American Economic Society’s annual meeting on Sunday. Said in.

At the end of last month, Trump signed a $ 900 billion law on coronavirus financial assistance to individuals and businesses. It includes a $ 600 stimulus check for many Americans. After showing that Trump favored a larger check, Democrats failed to raise the stimulus check to $ 2,000 during the final parliamentary decline.

Former Treasury Secretary Larry Summers, who worked with Romer in the Obama administration, received a $ 2,000 stimulating check last week. “A pretty serious mistake”

Romer said the biggest failure of the new relief package was the lack of adequate assistance to state and local governments.

“State and local budgets are in turmoil,” Rommer said, with more budget shortages than during the financial crisis. She said they are likely to lead to state-wide spending cuts.

Another failure was that the law did not fund key worker bonuses or hazard pay.

“I think people who do important work and are exposed to COVID-19 shouldn’t be doing better than those who have unemployment insurance,” Romer said.

Former Obama economist questions the wisdom of stimulus checking Former Obama economist questions the wisdom of stimulus checking

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