Last week President Joe Biden made history by signing the highly anticipated and hotly contested $1.9 trillion COVID-19 relief bill into law. The American Rescue Plan, passed along party lines by Congress, sends $1,400 checks to many Americans and extends federal unemployment benefits through early September. Other measures in the stimulus are also making news, like the expansion of the child tax credit and the $350 billion in federal aid allocated to state and local governments.
“We are going to cut childhood poverty in half.” — Paul Krugman, The New York Times
The measure is unprecedented in its size and scope and has been heralded as an important marker in shifting how we as a nation address and think about poverty. So, what does the stimulus bill mean for the future health of the economy? What does this all mean for you and your family?
Listen: New York Times columnist Paul Krugman talks about how the latest COVID-19 relief legislation will help Americans.
Paul Krugman is a Nobel Laureate and op-ed columnist for The New York Times where he covers macroeconomics, trade, health care, social policy and politics. He’s also the author or editor of more than 20 books including “Arguing with Zombies,” which is now available in paperback.
Krugman says he believes that the child tax credit that is included in the COVID-19 bill will dramatically reduce poverty. “We are going to cut childhood poverty in half,” he says. In discussing how Republicans generally approach economic stimulus, Krugman points out, “The ‘tax cuts approach’ doesn’t work very well.”
In talking more broadly about the effect the pandemic has had on Americans’ faith in government-backed social safety nets, Krugman says the government came to the rescue for many. “If ever there was a slump that required that the government go out and give people money, this was it,” he says.
Web story written by Allise Hurd