Stanford economist says the US needs a 'New New Deal' - Business Insider

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The unemployment rate could reach 32%, the highest level ever recorded this summer

"The size of those checks, you know, they're on the order of part of a month's rent or a month's rent, they're not the kinds of things that are going to last people through long-term unemployment," he said.Stanford University professor Matthew Jackson said the government may need to inject more capital and revisit the social safety net.instituted in the late 1920s and 1930s after The Great Depression.

The Great Depression had numerous sector slowdowns, like finance and farming, but it did not have any sectors so dramatically closed like we do today with the restaurant, tourism, airline, and sporting events industries, he said.

Businesses will need more capital in the form of forgivable loans so they can keep paying their employees while they're out of work, the economist said. Last week, House Democrats introduced the Emergency Money for the People Act, which would give $2,000 a month to Americans over the age of 16 who make less than $130,000 a year.

 

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