America on Road to Recovery, Congress Should Resist Another Massive Stimulus Package

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America on Road to Recovery, Congress Should Resist Another Massive Stimulus Package

Jul 2, 2020 1 min read

WASHINGTON—Following May’s encouraging jobs report, the economy added 4.8 million jobs in June, setting another all-time record. Rachel Greszler, a research fellow in Heritage’s Grover M. Hermann Center for the Federal Budget, released the following statement:

Two months of record jobs gains offer hope for recovery — the American economy is showing signs of getting back on track. Americans know federal support can’t sustain livelihoods indefinitely and have shown their willingness to return to work, restaurants, and stores.

 

Although the unemployment rate is still high, the significant turnaround shows that Congress should focus on fostering the recovery that’s already underway and resist the temptation to rush toward another massive stimulus package. Coupling employment opportunities and flexibility with temporary and targeted unemployment supports can help get Americans back to work and limit widespread economic damage.

While considering another coronavirus package, Congress should replace the weekly $600 unemployment insurance benefit that exceeds workers' previous wages with a temporary and partial federal match to state unemployment benefits, writes Greszler in a new Heritage report, "Tackling COVID-19 Unemployment: Work Opportunities and Targeted Support Beat Windfall Bonuses."

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