There’s a lot of debate in the US Congress over whether the US economy needs more stimulus—and if it does, how big the stimulus has to be. But a closer look at personal income numbers doesn’t leave much room for discussion. More stimulus is very much needed—and soon.
The COVID-19 crisis has left roughly 14 million people still out of work—nearly 10% of the total number of people employed before the crisis. The labor market has started to improve as the economy has gradually reopened, but there’s still a mountain to climb before things get back to normal. This means continued government support is necessary to keep households solvent and the US economy on the path to eventual recovery.