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Is it time for another stimulus bill? Here are some expert opinions

Phillip Molnar, The San Diego Union-Tribune on

Published in Business News

House Democrats proposed a roughly $3 trillion bill recently to battle the health and economic effects of COVID-19.

Some Republican lawmakers, and a top White House economic adviser, have cautioned against another round of federal stimulus spending too soon after the last package -- preferring to take a "wait and see" approach.

Politics aside, many Americans are wondering if the federal government will be offering more support as they are out of work.

Q: Should the federal government wait a while before another stimulus bill?

Kelly Cunningham, San Diego Institute for Economic Research

YES: After immense spending, unprecedented in world history, an even more enormous spending bill should be reconsidered. Effects from such massive deficit spending are to be realized. Imposing more stresses will make it harder for employers to stay afloat amid changing conditions and challenges of rehiring workers. Incentivizing unemployment with debt-financed compensation is no replacement for goods and services production. Additional spending proposals have little to do with stimulus and more to do with a wish list of government spending.

 

Gary London, London Moeder Advisors

NO: It seems that the mantra of this administration is "wait and see." With almost 100,000 deaths and unprecedented economic destruction, I am not sure what we are waiting to see. If we are at "war" as the president has declared, then perhaps our lawmakers ought to mimic what Roosevelt devoted to WWII -- $4 trillion representing 40% of the nation's GDP at the time. We won that war, and incidentally ended the Great Depression as a fringe benefit. A near term infusion of $3 trillion is a much smaller investment, which will undoubtedly save many businesses -- and lives -- as we progress to manage and rid ourselves of this virus.

Jamie Moraga, IntelliSolutions

YES: Many states are slowly reopening for business and people are getting back to work. We should see the impacts of that first. It isn't economically sustainable to continue to pump trillions of dollars into multiple stimulus packages. This money will have to be paid back -- likely resulting in deep spending cuts and tax increases. In addition, we must consider the ramifications to our national security. This means protecting the dollar from long-term damage due to continued spending that results in a tremendously heavy debt.

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