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How White House Economists Are Thinking About COVID-19 Relief

White House Economists:

Bernstein said that there is a deadline to meet, regardless of whether it’s unemployment insurance or mortgage forbearance. “These kinds of things need to be extended quickly so that American citizens and businesses don’t suffer another one of those air pockets or lapses in the relief. Bernstein stated that the White House Economists are also focused on economic inequalities, which continue to be exacerbated due to the pandemic. He said that America is currently experiencing a K-shaped recovery that disproportionately affects Americans of color.

“The people at the top of the K are those who continue to prosper and do well. Bernstein stated that the bottom leg of K is made up of people who are still struggling to cope with the economic effects of the pandemic. “We live in an economy where stock (markets) are booming and food banks lines stretch for blocks.”

Bernstein, who was previously the chief economic advisor to Mr. Biden during his time as vice president, dismissed the idea of a modest COVID-19 relief package, like that proposed by Senate Republicans. He reiterated the White House mantra, “The risks of doing too many are much lower than the risks of doing too little.”

Bernstein stated that he doesn’t think it will cause overheating. He also addressed inflation concerns if too much money is injected into the economy. “I believe that the risk of the virus being eradicated and the people receiving the assistance they need is much lower than the risk of not taking enough action.”

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