We Need to Extend Economic Aid to the Unemployed Immediately

A few days ago I noted that low-income workers were still spending a lot, thanks largely to assistance from the CARES program, but they’re also still unemployed at high levels. My evidence was a little indirect, though, so I’m happy to present direct evidence for this based on data from Raj Chetty’s economic tracker. Here’s consumer spending:

The lowest income group has been spending at pre-pandemic levels since June, while the highest income group is still holding back. But here’s employment:

Low-wage workers are still far below their pre-pandemic levels of employment, while high-wage workers are back to normal and even mid-wage workers are close to normal.

Today, economists at Goldman Sachs became the latest to issue a warning that economic recovery will falter if Congress doesn’t provide more federal aid. That’s nearly a unanimous view these days, but these charts make it clear what kind of federal aid we need: not broad-based stimulus, but specific assistance to those who have lost their jobs. Let’s get with it.

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PLEASE—BEFORE YOU CLICK AWAY!

“Lying.” “Disgusting.” “Scum.” “Slime.” “Corrupt.” “Enemy of the people.” Donald Trump has always made clear what he thinks of journalists. And it’s plain now that his administration intends to do everything it can to stop journalists from reporting things it doesn’t like—which is most things that are true.

We’ll say it loud and clear: At Mother Jones, no one gets to tell us what to publish or not publish, because no one owns our fiercely independent newsroom. But that also means we need to directly raise the resources it takes to keep our journalism alive. There’s only one way for that to happen, and it’s readers like you stepping up. Please do your part and help us reach our $150,000 membership goal by May 31.

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