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How To Maximize The Benefit Of Universal Stimulus Checks

03.17.2020

Thought leaders across the political spectrum are embracing a novel idea to manage the recession caused by the novel coronavirus: just send everyone cash.

Yesterday, Utah Sen. Mitt Romney proposed sending every American adult a check for $1000. Jason Furman, former Chair of the Council of Economic Advisors under President Obama, has proposed sending every American adult $1000 and every child $500, a proposal which former CEA Chair Greg Mankiw also endorsed. On the furthest end of the spectrum, former presidential candidate Andrew Yang has called for sending every American a check for $1000 each month until the coronavirus crisis ends.

Why are these proposals so popular among experts and politicians alike? In short, it’s because of their administrative simplicity. The bureaucracy required to create a new federal program can’t be built overnight, and the U.S. economy is already in the midst of a major crisis. The federal government needs to start pumping massive amounts of stimulus into the economy ASAP. Millions of Americans who are soon to be laid off or furloughed need cash, at least temporarily, to continue making their rent or mortgage payments – many cannot afford to waste time jumping through the usual hoops required to access many federal benefits, and the system may not even be prepared to process all qualified applicants in a timely manner during an economic crisis. A universal cash benefit ensures that nobody who needs financial support slips through the cracks.

Read the full piece here.