Wednesday Night Owls: Principles for relief, recovery, and rebuilding the U.S. economy
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Night Owls, a themed open thread, appears at Daily Kos seven days a week Josh Bivens at the Economic Policy Institute writes in Principles for the relief and recovery phase of rebuilding the U.S. economy that “an overwhelmingly policy response” isWednesday Night Owls: Principles for relief, recovery, and rebuilding the U.S. economy
Night Owls, a themed open thread, appears at Daily Kos seven days a week Josh Bivens at the Economic Policy Institute writes in Principles for the relief and recovery phase of rebuilding the U.S. economy that “an overwhelmingly policy response” is need to address the shock of the coronavirus pandemic and recession. First stop the economic bleeding and then build a resilient economy: By “stop the bleeding” we mean using fiscal policy to end the crisis of joblessness and restore the labor market to a reasonable degree of health. Failing to invest enough to sustain a healthy labor market would fatally compromise both the political and the economic ability to structurally reform the economy’s key institutions to create fairer outcomes. We have seen this failure before, with fiscal recovery efforts following the Great Recession of 2008–2009 that were insufficient and too short-lived. As a result of this austerity, it took a full decade for the labor market to return to even its pre–Great Recession health (which was too modest a benchmark to begin).1 It seems clear that a key reason why the Obama administration was unable to get ambitious reform efforts finished after its first year in office was the continued intense labor market distress. Read more