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Biden package concerns

A research team including Harvards Raj Chetty, Best known for pioneering research on slowing the ability of the poor to enter the U.S. middle class, it has been proposed to lower the income limit for $ 1,400 stimulus checks from $ 75,000, as those who earn more do the Not spending money fast enough to help the economy now.

Jason Furman, who chaired Obama’s Council of Economic Advisershas recommended cutting the $ 400 additional weekly unemployment insurance proposed by Biden over time to help motivate people to find work as the introduction of vaccines makes work safer.

“There is a danger that it will take people too long to find work. being overly optimistic and becoming unemployed in the long run.

That risk was trivial in relation to the need to support the people in 2020. By autumn it will be more real, “he wrote.

In his Friday debate with Summers, Krugman admitted that stimulus checks had a weaker economic justification than other subsidies like unemployment insurance, but said: “They are also the most popular. That is part of policy making. “

It is not clear whether the debate will affect the outcome of any bill that could remain intact through a Democrat-controlled Congress.

“It will pass with Kamala Harris’ voice,” said Krugman. “And then we’ll find out,” who was right in the months ahead.

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