Noted: Boushey: The Path to Recovery
It really is not too late to turn the coronavirus recession into a sharp V-shaped recession. But I would say that the odds that we are going to do so are less than 10%. Only a very small number of people with any access to the levers of power or the megaphones understand that the keys to rapid recovery lie in boosting aggregate demand quickly by enough and in ensuring that businesses are not sent miss leading "bankruptcy shut down” signals. Heather Boushey understands this. Only a small proportion of other people of status and influence in Washington DC understand this:
Heather Boushey: It’s Not too Late to Put the American Economy on a Path to Recovery https://medium.com/@heatherboushey/its-not-too-late-to-put-the-american-economy-on-a-path-to-recovery-809fa1259fdc: ‘We know what we need to do in a recession...
...Unemployment Insurance, aid to the states, enhanced nutrition support, direct payments—and infrastructure and job programs—are the tried-and-true programs that stabilize the macroeconomy while supporting America’s families. Decades of evidence show these programs work. Now, in this package, Congress should ensure that the supports we put in place stay in place by crafting them so that they trigger off when the labor market recovers, and not before… #coronavirus #macro #noted #2020-05-12
