Last week, Democratic Leader Sen. Chuck Schumer and Sen. Bernie Sanders requested a Congressional Budget Office analysis of the long-term economic impact of the pandemic, to advise Congress on next steps. Well, they got it: over the next decade, the CBO says the real gross domestic product will take a $15.7 TRILLION loss compared to a pre-pandemic analysis.
Nearly $16 TRILLION. There's a way to avoid that, and it's not in trickling out a few trillion dollars at a time, billions of which is going to wealthy corporations and tax cuts for the rich. Spend $10 trillion NOW, and spend it on people—keeping them in their homes, keeping them adequately fed, reimbursing their employers' payroll costs so their jobs will be there for them in the after time—all of that will keep the economy afloat. More importantly, it will keep PEOPLE alive and well and financially intact.
When Federal Reserve Chairman Jerome Powell said that the number 1 economic priority was keeping families solvent, this is what he meant. When he said Congress had to "think big" in the next coronavirus response, this is what he meant. At the end of April, he warned "Economic activity will likely drop at an unprecedented rate in the second quarter. […] It may well be the case that the economy will need more support from all of us, if the recovery is to be a robust one." The economy needs more support.
Schumer and Sanders said the same in a statement released with the CBO analysis. "Last week we learned that over 40 million Americans lost their jobs as a result of this horrific pandemic," the senators wrote. "Today, the CBO tells us that if current trends continue, we will see a jaw-dropping $16 trillion reduction in economic growth over the next decade. How can Senator McConnell look at these catastrophic economic numbers and believe there is no 'urgency' to protect America’s working families?"
"At a time of massive wealth and income inequality, how can President Trump believe that what this country needs is another huge tax break for the top one percent?" They continued. "In order to avoid the risk of another Great Depression, the Senate must act with a fierce sense of urgency to make sure that everyone in America has the income they need to feed their families and put a roof over their heads. The American people cannot afford to wait another month for the Senate to pass legislation. They need our help now."
America does need Congress's help now, particularly our communities of color. The House-passed HEROES Act, another $3 trillion effort would certainly help, and it's right there right now for the Senate to pass. But it's not enough. Money is incredibly cheap right now for the federal government to borrow. Spending $10 trillion now to stave off $16 trillion in losses over the next decade is just prudent.