Are we talking about the same economy, the U.S. economy, where 28 million people filed for continuing jobless claims this week and almost one million (963,000) filed for initial unemployment?
According to the White House, or more specifically, the White House Council of Economic Advisors (CEA), yes! This economy is quickly on the mend because of U.S. government action.
The CEA released a report that said increased transfer payments (think federal unemployment bonus checks, stimulus payments, and payroll protection loans) and expanded liquidity measures aimed at companies should shield U.S. households and businesses from the worst of the economic crisis unleashed by the coronavirus pandemic.
The group also claimed the government acted with “unprecedented scale, speed, and coordination, surpassing past efforts to mitigate previous crises.” That’s a big claim, but given that the federal government approved and spent trillions of dollars in a matter of weeks, it might be true. As to how effective it was, or will be over the long term, has yet to be seen. This seems awfully soon to be taking a victory lap.
And the report wouldn’t be complete without a bit of a jab.
Tyler Goodspeed, the CEA’s acting chair, told reporters that the economy would recover even faster if Congress could reach an agreement on the next round of relief spending.
With unemployment bonus checks trailing off and eviction deferments and moratoriums ending, we’ll see if the situation seems as positive in October.