Here's how much stimulus is actually needed to avoid a jobs disaster - Business Insider

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The Republicans' $1 trillion proposal isn't nearly enough — here's what economists say it should be to avoid a jobs catastrophe

Still, Heidi Shierholz, director of policy at the Economic Policy Institute, said in an email to Business Insider that it's "impossible" to estimate how much stimulus is needed to bring the country to full employment.

Shierholz said she recommends policy makers keep the $600 weekly top-up and phase it out only as jobs begin to rebound. This idea, called an "automatic stabilizer," would remove the need for congressional action to alter the unemployment situation as it develops.

She told Business Insider that the provision could form part of a spending package ranging from $4 trillion to $6 trillion that she believes is needed to smother the coronavirus and set the stage for an economic recovery. Sahm said priorities for lawmakers should include extending aid to cash-strapped states, maintaining the enhanced unemployment insurance, and providing stimulus checks for people during the pandemic.

"State and local governments are in a complete budget crisis," Sahm said, adding that plugging their budget shortfalls would be critical to stabilizing the economy."Passing emergency relief legislation that incorporates automatic triggers would have the enormous benefit of ensuring assistance continues to flow to workers even if Congress itself is unable or unwilling to act," Rep.

 

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