Equitable Growth releases policy agenda for U.S. antitrust enforcement

New report aims to restore competition in next administration, new Congress

FOR IMMEDIATE RELEASE
November 19, 2020
CONTACT:
Erica Handloff, 202-746-5747
ehandloff@equitablegrowth.org

WASHINGTON – Today, the Washington Center for Equitable Growth released a new report outlining a roadmap for the next administration and the incoming 117th Congress to address rising market power and restore a competitive U.S. economy. The authors, who represent some of the foremost experts in their fields, call for fundamental changes to competition policy, antitrust laws, and the enforcement of both.

“For far too long, the federal government has failed to adequately address the problem of rising market power in the United States,” explained Equitable Growth Director of Markets and Competition Policy Michael Kades. “This report provides a blueprint for policymakers of the changes needed to strengthen antitrust law and its enforcement, changes that will foster competition and innovation, prevent the abuse of market power, and reduce inequality.”

The report, which offers a bold new vision for the future of antitrust, is the work of seven academic experts with deep policy experience in antitrust enforcement:

  • Bill Baer, on leave, visiting fellow in Governance Studies, The Brookings Institution
  • Jonathan B. Baker, research professor of law, American University Washington College of Law
  • Michael Kades, director of markets and competition policy, Washington Center for Equitable Growth
  • Fiona Scott Morton, Theodore Nierenberg Professor of Economics, Yale University School of Management
  • Nancy L. Rose, Charles P. Kindleberger Professor of Applied Economics, Massachusetts Institute of Technology
  • Carl Shapiro, Professor of the Graduate School, Haas School of Business and the Department of Economics at the University of California, Berkeley
  • Tim Wu, Julius Silver Professor of Law, Science and Technology, Columbia Law School

Relying on cutting-edge research to advance their policy recommendations, the authors urge the new administration and Congress to:

  • Devote resources to the passage of new antitrust legislation and increase resources for antitrust enforcement
  • Revitalize antitrust enforcement with a focus on strengthening deterrence 
  • Commit to a “whole government” approach to competition policy, including the establishment of a new White House Office of Competition Policy to promote rulemakings that catalyze competition and reverse those that entrench incumbents or suppress competition

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

Lisa Cook, Hilary Hoynes, Atif Mian join Equitable Growth Steering Committee

New members to support organization’s efforts to advance evidence-backed policies and ideas to promote strong, stable, broadly shared growth

CONTACT:
Erica Handloff, ehandloff@equitablegrowth.org

WASHINGTON – The Washington Center for Equitable Growth announced today that three distinguished economists—Lisa D. Cook of Michigan State University, Hilary Hoynes of the University of California, Berkeley, and Atif Mian of Princeton University—have joined its Steering Committee to help guide the organization’s efforts to study economic inequality and its impact on economic growth and stability, and to build a new narrative about what makes the U.S. economy grow. As Steering Committee members, they will advise on the organization’s growing academic grants program and help strengthen connections to (and among) our academic community, especially in supporting the next generation of scholars.

“We’re thrilled that this trio of leaders in their fields are joining our Steering Committee,” said Equitable Growth President and CEO Heather Boushey. “As we continue to enhance our academic engagement, they will help us to identify the most pressing research questions related to inequality and economic growth, as well as the rising stars engaged in advanced, innovative scholarship. With their extensive engagement with the policy process, they also exemplify Equitable Growth’s mission to bring together researchers and policymakers seeking to advance evidence-based agendas to address national problems.”

Lisa D. Cook, who has been a member of the Equitable Growth Research Advisory Board since its launch, is a professor in the Department of Economics and in international relations (James Madison College) at Michigan State University. Among her current research interests are economic growth and development, financial institutions and markets, innovation, and economic history. She has served as a senior economist at the president’s Council of Economic Advisers and a senior advisor at the U.S. Department of the Treasury. Cook was the first Marshall Scholar from Spelman College, where she earned her B.A. She received a second B.A. from Oxford University and her Ph.D. in economics from the University of California, Berkeley.

“Through its events, convenings, and academic grants, Equitable Growth is a key player in cutting-edge research on economic inequality and growth,” Cook said. “Solutions to building a more equitable and broadly shared economy will continue to be at the forefront as long as wages and economic mobility remain stagnant and the overall concentration of wealth remains at the top. I am thrilled to offer my support to the organization, as well as help drive conversations and action that address how we can strengthen our economy.”

Hilary Hoynes is a professor of economics and public policy and holds the Haas distinguished chair in economic disparities at the University of California, Berkeley, where she also co-directs the Berkeley Opportunity Lab. Her research focuses on poverty, inequality, food and nutrition programs, and the impacts of government tax and transfer programs on low-income families. She was previously awarded an Equitable Growth academic grant, and she served on the National Academy of Sciences Committee on Building an Agenda to Reduce the Number of Children in Poverty by Half in 10 Years. Hoynes received her Ph.D. in economics from Stanford University and her undergraduate degree from Colby College.

“Equitable Growth’s extensive research is critical to understanding the economic and social disparities individuals and communities face, especially as the coronavirus recession has revealed the ways in which the economy does not work for the majority of families,” Hoynes said. “It’s more important than ever for individuals and policymakers who want to build an economy that works for all—not just the few—to have access to evidence-based ideas and solutions. I’m excited to help guide the organization in building even stronger bridges between academics and policymakers.”

Atif Mian is the John H. Laporte, Jr. Class of 1967 professor of economics, public policy, and finance at Princeton University and director of the Julis-Rabinowitz Center for Public Policy and Finance at the Princeton School of Public and International Affairs. A co-author with Amir Sufi on House of Debt, a book that describes how debt precipitated the Great Recession, Mian’s work examines the connections between finance and the macroeconomy. He earned his B.A. and his Ph.D. in economics from the Massachusetts Institute of Technology. He was also previously awarded an Equitable Growth academic grant.

“The economic gap between the wealthy and the rest of society is the widest it has been in nearly a century,” Mian said. “Understanding how that growing inequality affects both the economy and broader society is the first step in understanding how to address those disparities. Equitable Growth not only invests in research that explores a diverse range of issues but also connects academics with policymakers so that research can turn into potential solutions that benefit the majority of society.”

The Equitable Growth Steering Committee comprises leading academics and former senior policymakers, including Nobel Laureate Robert Solow, former Federal Reserve Board of Governors Chair Janet Yellen and Vice Chair Alan Blinder, former White House Council of Economic Advisers Chair Jason Furman, former Treasury Department chief economist Karen Dynan, former White House Chief of Staff and Equitable Growth co-founder John Podesta, and Equitable Growth President and CEO Heather Boushey. After 7 years on the committee, founding members Emmanuel Saez of the University of California, Berkeley and Janet Currie of Princeton University are departing. Other founding members included Harvard University economist Raj Chetty, former Director of the White House Domestic Policy Council Melody Barnes, and former Chair of the White House Council of Economic Advisers and now UC Berkeley economist Laura Tyson.

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

Washington Center for Equitable Growth awards $1.1 million to scholars exploring how economic inequality impacts economic growth and stability

New round of grants places a particular emphasis on racial and ethnic elements of inequality, economic mobility, the impact of domestic outsourcing, market concentration, and climate and the environment

CONTACT:
Erica Handloff, ehandloff@equitablegrowth.org

Washington, D.C. – The Washington Center for Equitable Growth today announced that it will award research grants totaling $1,074,060 to seek evidence on important issues related to the intersections between economic inequality and economic growth and stability.

“Through our academic grants program, Equitable Growth aims to deepen our understanding of how economic inequality affects economic growth and stability,” said Greg Leiserson, Equitable Growth’s Director of Tax Policy and Chief Economist. “Each round of grantmaking adds to our portfolio of cutting-edge research that informs policymaking to support strong, stable, and broad-based economic growth. We are pleased to be able to continue our support for scholars doing this critical work.”

This marks the organizations’ seventh cycle of academic grantmaking and sets a new record for largest funding year to date. Since 2013, Equitable Growth has seeded more than $6 million to nearly 200 scholars through its competitive grants program.

The 46 economists and other social scientists who will participate in this funded research consist of faculty, postdoctoral scholars, and Ph.D. candidates at leading U.S. colleges and universities, as well as some scholars from government research agencies.

Equitable Growth funds research in four categories:

  • Human capital and well-being, including the effect of economic inequality on the development of human potential
  • The labor market, including the effect of inequality on the smooth functioning of the labor market and the gains from labor
  • Macroeconomic policy, including the effects of monetary, fiscal, and tax policy on inequality and growth
  • Market structure, including the causes of increased concentration and consequences for productivity, growth, labor markets, and power

In this new round of grants, the organization placed a particular emphasis on racial and ethnic elements of inequality, economic mobility, the impact of domestic outsourcing, market concentration, and climate and the environment. The Bill & Melinda Gates Foundation provided generous financial support for research investigating economic mobility, and the Alfred P. Sloan Foundation provided generous financial support for projects exploring the impact of domestic outsourcing on workers.

Equitable Growth has always had a focus on the racial and ethnic elements of inequality in the United States, and the events of 2020 have led the organization to commit to an even greater emphasis on racial inequality and justice, including a redoubling of efforts to strengthen the pipeline of early-career Black scholars and other scholars of color.

“For too long,” said Equitable Growth President and CEO Heather Boushey, “the field of economics has ignored the intersection of race and power in research agendas. That must change. At Equitable Growth, we commit to doing our part by funding more research based on the lived experience and legacy of structural racism.”

Equitable Growth’s grant program is open to researchers affiliated with a U.S. university, and its doctoral grants are open to graduate students currently enrolled in a U.S. doctoral program. For more information on the grants awarded in 2020, click here.

To view the 2020 Request for Proposals, click here The 2021 Request for Proposals will be released in November 2020.

Full descriptions of the 2020 grants and a profile of each grantee can be found on the Equitable Growth website: human capital and well-beingmacroeconomic policymarket structure, and the labor market.

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

Statement on Pandemic Unemployment Compensation

Washington, DC – When Congress passed the CARES Act in March, leaders of many progressive organizations supported their efforts to provide relief to millions of people across America, while acknowledging that the CARES Act was an initial step, but wholly insufficient on its own, to address the massive economic crisis catalyzed by COVID-19. In the ensuing months, the Trump administration has continued to mismanage the response to the virus, and, as a result, the pandemic has worsened, the economic crisis is ongoing, and the need for continued relief to families across the country is as urgent as ever. 

Federal Pandemic Unemployment Compensation (PUC), which is giving tens of millions of unemployed workers a $600 per week boost in unemployment income, has helped ease the pain of this crisis by providing much-needed income to families during an economic crisis and has boosted the economy overall. Every week for the last four months, more than twice as many workers have filed for unemployment insurance than during the worst week of the Great Recession. Meanwhile, cases of COVID-19 are once again rising across the country, and we still lack unified national leadership to give direction and stability in these unprecedented times. Congress must extend enhanced unemployment benefits or risk economic calamity. 

Unemployment Insurance is keeping the economy afloat. This $600 boost to unemployment benefits has helped millions pay rent, buy groceries, and keep the lights on. Slashing workers’ incomes now, by any amount, before it is safe to go back to work—and while there are still more than 3 times as many unemployed workers as job openings—will further hurt demand. Any cut will mean millions of families will have less to spend at grocery stores, restaurants, and other businesses, which will catalyze a second wave of layoffs and compound economic hardship across the country. Cutting unemployment will cause irreparable harm, shrink the economy, and cost us millions more jobs over the next year. To ensure this aid does not turn off before the crisis has fully abated, Congress should tie the program to objective economic indicators like state unemployment rates rather than arbitrary deadlines that create counter-productive, last-minute political haggling.

Cutting Unemployment Insurance is an attack on Black and brown workers. Black and brown workers have been disproportionately harmed by all aspects of this crisis, including higher infection rates and higher unemployment rates than their white counterparts. This is especially true for Black and brown women, who are overrepresented in the hardest hit industries. PUC has been a crucial lifeline for Black and brown families, effectively keeping millions out of poverty. Cutting this support now would be economically devastating to communities of color, most acutely women of color, who, due to structural racism, already have less of a financial cushion to rely on

Unemployment Insurance is saving lives. Our first priority in a global pandemic needs to be peoples’ health. Unemployment benefits help keep families and the economy from financial collapse while it’s still too dangerous to reopen businesses and send people back to work. We’ve seen that reopening before the pandemic is under control will not help us in fighting the spread of the virus or with economic recovery.

We are the economy. As long as families and communities across the country are struggling, our economy will struggle. Congress must act swiftly to avoid the economic damage that will be caused by cutting the income of tens of millions of workers amid an unprecedented pandemic and economic crisis. 

We also urge Congress to pass legislation that meets the historic scale and scope of this crisis. That means that in addition to UI, Congress must provide other urgent relief to keep the economy afloat, including state and local aid, recurring checks, an extension of rent moratoriums and mortgage delays, emergency standards for worker health and safety and premium pay for workers risking their lives to work, childcare support, permanent paid leave and earned sick days, and increased SNAP and food assistance payments. Large, bold investments accompanied by inclusive structural reforms are urgently needed for workers, families, and communities—the real drivers of our economy—to navigate this crisis. 

The following leaders signed this statement:

Maurice BP-Weeks, Action Center on Race and the Economy
Neera Tanden, Center for American Progress
Eileen Applebaum, Center for Economic and Policy Research
Brian Kettenring, Center for Popular Democracy
Deborah Weinstein, Coalition on Human Needs
Dorian Warren, Community Change Action
Sabeel Rahman, Demos
Thea Lee, Economic Policy Institute
Natalie Foster, Economic Security Project
Chris Hughes, Economic Security Project
Taylor Jo Isenberg, Economic Security Project
Indi Dutta-Gupta, Georgetown Center on Poverty and Inequality
Michael Linden, Groundwork Collaborative
Adam Krauthamer, Local 802 AFM
Kristin Rowe-Finkbeiner, MomsRising
Rahna Epting, MoveOn
Rebecca Dixon, National Employment Law Project
Fatima Goss Graves, National Women’s Law Center
Sister Simone Campbell, NETWORK Lobby for Catholic Social Justice
George Goehl, People’s Action
Felicia Wong, Roosevelt Institute
Mary Kay Henry, Service Employees International Union
Nathan Williams, Town Hall Project
Heather Boushey, Washington Center for Equitable Growth

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

Equitable Growth awards more than $250,000 for new research on paid leave

Researchers will explore how paid leave affects engines of economic growth in the United States

CONTACT:
Giovanni Rocco
grocco@equitablegrowth.org

WASHINGTON – The Washington Center for Equitable Growth today announced it will award $267,500 to four research teams exploring three core areas of paid leave policies in the United States: medical leave, caregiving leave, and employer responses to paid leave.

“We are proud to be funding four projects that will bring cutting-edge research to bear on ongoing debates around paid leave policy,” said Equitable Growth Director of Family and Economic Security Policy Alix Gould-Werth. “For decades, policymakers have posed questions about the effects of paid leave used to care for oneself or loved ones. This new research, which will use innovative research methods and novel data sources, also will provide much-needed answers to those questions and shed light on how employers interact with paid leave systems.”

As the coronavirus pandemic continues to upend the lives of workers and families, paid leave has come into focus as an indispensable factor in slowing the spread of the virus, keeping families and communities safe, and reopening the U.S. economy.

“Paid leave is key to building an economy where growth is strong and stable, and one where growth is broadly shared up and down the income ladder,” said Equitable Growth President and CEO Heather Boushey. “These projects will advance our understanding of how, as a nation, we can build economic resilience and achieve more equitable growth.”

Since its founding in 2013, Equitable Growth has awarded more than $5 million to more than 200 cross-disciplinary scholars. In 2019, more than $200,000 was awarded to examine the effects of state-level paid family and medical leave policies on labor market participation and drug-related outcomes.  

Full descriptions of the four paid leave research projects, including biographies of the grantees, are available here. Later this year Equitable Growth will announce the awardees of its 2020 cross-disciplinary grants program.

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

More than 150 economists tell Congress: More relief needed to avoid ‘prolonged suffering’ and ‘stunted economic growth’

Led by Ben Bernanke, Heather Boushey, and Cecilia Rouse, statement endorsers include two former chairs of the Federal Reserve, four former chairs of the Council of Economic Advisers, and two Nobel laureates, among others

FOR IMMEDIATE RELEASE

CONTACT:
Erica Handloff, 202-746-5747
ehandloff@equitablegrowth.org

WASHINGTON – Today, the Washington Center for Equitable Growth released a statement imploring Congress to immediately pass a “multifaceted relief bill of a magnitude commensurate with the challenges our economy faces.” Led by Ben Bernanke, former chair of the Federal Reserve and distinguished fellow in residence at The Brookings Institution, Heather Boushey, president and CEO of the Washington Center for Equitable Growth, and Cecilia Rouse, dean of the Woodrow Wilson School of Public and International Affairs at Princeton University, the statement is endorsed by more than 150 scholars, including two former chairs of the Federal Reserve, four former chairs of the Council of Economic Advisers, and two Nobel laureates, among others.

Congress and the Federal Reserve have each provided unprecedented levels of economic support for those affected by the coronavirus recession, but the endorsers underscore the need for additional legislation. This relief will help avoid prolonged suffering, particularly in Black, Latinx, and Native American communities, all of which are disproportionately affected by both the public health and economic crises.

According to the endorsers, new legislation should provide, at a minimum, “continued support for the unemployed, new assistance to states and localities, investments in programs that preserve the employer-employee relationship, and additional aid to stabilize aggregate demand.” The signers also emphasize that “an adequate response must be large, commensurate with the nearly $16 trillion nominal output gap our economy faces over the next decade.”

A full list of signers is available here.

Following is the full text of the statement:

Dear Majority Leader McConnell, Minority Leader Schumer, Speaker Pelosi, and Minority Leader McCarthy:

The novel coronavirus outbreak has unleashed a recession that is unprecedented in the speed and severity of its decline. Since February, 1 in 5 workers has applied for unemployment benefits. And among people who were working in February, almost 40 percent of those in households making less than $40,000 a year had lost a job in March.

These parallel health and economic crises are especially damaging to many communities of color in the United States. Black, Latinx and Native American families are bearing a greater share of COVID-19 deaths and also face higher rates of unemployment than their White counterparts. Over the past 30 years, Black Americans have consistently faced unemployment rates twice as high as those for White Americans and are particularly hard hit during economic downturns. Evidence from the Great Recession indicates that a prolonged economic downturn will seriously damage the economic opportunities and wealth accumulation of all Americans, but especially of families of color.  

Policymakers in Congress and the Federal Reserve responded to this crisis with unprecedented levels of economic support for those affected, but more needs to be done. If Congress fails to act, state and local governments face potentially disastrous budget shortfalls, and the Congressional Budget Office estimates the unemployment rate will likely be more than 11 percent at the end of the year.  

Congress must pass another economic recovery package before most of the support in the CARES Act expires this summer. Given current projections of economic need, this new bill should provide, at a minimum, continued support for the unemployed, new assistance to states and localities, investments in programs that preserve the employer-employee relationship, and additional aid to stabilize aggregate demand. While the signers of this letter have different views on the optimal size and composition of the package, we all agree that an adequate response must be large, commensurate with the nearly $16 trillion nominal output gap our economy faces over the next decade, according to CBO estimates.  

A full economic recovery will remain dependent on the public health situation, including efforts to develop effective therapeutics or vaccines. Insufficiently bold congressional policy responses to the Great Recession unnecessarily prolonged suffering and stunted economic growth. Congress should not make this mistake again. As Jerome Powell, the chair of the Federal Reserve, warns, the economic outlook is “highly uncertain and subject to significant downside risk.” In the opinions of the undersigned, Congress should address this risk, and the already occurring economic damage, by passing, as soon as possible, a multifaceted relief bill of a magnitude commensurate with the challenges our economy faces.

Signed,

Dr. Ben Bernanke, Distinguished Fellow in Residence, Economic Studies Program, Brookings Institution

Dr. Heather Boushey,
President & CEO, Washington Center for Equitable Growth

Dr. Cecilia Rouse,
Dean, Woodrow Wilson School of Public and International Affairs, Princeton University

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

Statement on structural racism and economic inequality in the United States

Following is a statement from Heather Boushey, president and CEO of the Washington Center for Equitable Growth:

At Equitable Growth, we stand with our Black colleagues and Black families across the country who every day shoulder the legacy of White supremacy and systemic violence older than the United States itself. We condemn the recent murders of George Floyd, Breonna Taylor, Tony McDade, David McAtee, and Ahmaud Arbery and so many, many more Black men, women, and children who have died from police violence, unchecked White civilian power, and structural racism over more than 400 years. Each and every one of their lives matters, and we bear witness to their senseless loss of life.

For too long, the field of economics, dominated by White gatekeepers, has failed to fully acknowledge the work of Black scholars and ignored the intersection of race and power in research agendas or treated race as a sideshow—something ancillary to the core work. Many in the profession justify this by saying that studying this important work is narrowly in the purview of the too-few Black economists in the academy, government, or other elite institutions. That must change.

At Equitable Growth, we commit to doing our part. We commit to using our power as an economic research and grantmaking organization to fund more research based on the lived experience and legacy of structural racism, support more Black scholars seeking answers to these often overlooked experiences, elevate those ideas for the policymaking community, and ensure the voices and experiences of Black economists, policymakers, and staff members are reflected in all of the work we do. We commit to creating a publicly accessible resource by the end of 2020 that will publish and track over time the demographic characteristics of our grantees, leadership, and staff as one way to hold ourselves accountable.

Key to understanding a pathway forward is serious dialogue and examination about wealth and power. The wealth of this nation is perfused with the legacy of slavery. Our nation’s wealth continues to be disproportionately owned by Whites and that economic power translates into social and political power. We need reparations policies enacted to at long last address the original sin on which our nation was founded—a sin that continues to benefit White Americans and exploit Black Americans to this very day.

Every organization, including Equitable Growth, needs to commit to acknowledging and addressing the role that systemic racism and White supremacy play in U.S. politics, the economy, and our very own institutions. My intention is to hold ourselves accountable to creating public benchmarks relevant to our own organizational mission with the goal of pushing government, institutions, and policymakers to reflect the priorities of the Movement for Black Lives and a world where all decisions reflect the unequivocal truth that Black Lives Matter.

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

 

 

Think Tank Leaders Respond to Senate Bill, Reiterate Call for Congress to Step Up to Meet Scale of Crisis and Help Workers, Families, and the Economy

“The legislation that just passed the Senate is a small, but wholly insufficient, step in the right direction.”

“This is not a moment for small measures or early declarations of victory. Congress must get to work immediately on additional legislation.”

Washington, DC – Today, following the Senate passage of interim coronavirus response legislation, leaders of progressive research, policy, and advocacy groups released the following statement calling on Congress to go much further to pass a robust legislative package that meets the scale of this crisis. The leaders once again laid out four specific principles that must guide continued congressional action to ensure that upcoming legislation puts workers, Black and brown communities, and the most vulnerable families ahead of Wall Street and massive corporations. A full list of signers is below.

“Two weeks ago we called on Congress to take aggressive action to help struggling families and communities, stabilize the economy, and enact the structural changes needed to make our economy less vulnerable to crises like these. The legislation that just passed the Senate is a small, but wholly insufficient, step in the right direction. While additional aid for small businesses is critical—as is the long-overdue additional investment in testing—the bill doesn’t go nearly far enough, it leaves quite a lot left undone, and it does not fully live up to the principles needed for an effective and inclusive relief and recovery package. As a result, many people, families, and communities will remain in dire straits.

“This is not a moment for small measures or early declarations of victory. Congress must get to work immediately on additional legislation that meets the scale of this public health and economic crisis and that includes built-in mechanisms to ensure that the aid provided will not expire before the crisis is over. We once again urge them to adhere to the following principles to ensure that workers and families are prioritized so that we can protect lives and livelihoods, and rebuild our economy stronger than it was before.”

“Build Economic Resilience for the Long Term. This crisis has laid bare that decades of rampant inequality, attacks on public institutions, and blind faith in markets to solve public problems has left our economy deeply vulnerable. This crisis is acute in part because millions of families lack good jobs and adequate healthcare—especially the Black and brown families and women who are filling what are only now deemed essential roles in our economy—and because government agencies tasked with pulling people from the brink are operating on threadbare budgets. Congress must address the underlying structural weaknesses in our economy that helped propel this crisis and ensure that the investments made now are durable enough to prevent future crises.

“Reinforce essential responders, including workers, small businesses, and state and local governments. This crisis confirms how workers in traditionally low-paid jobs like warehouse workers, grocery clerks, farm workers, and child care workers are—like health care professionals—essential responders. These workers, disproportionately women and people of color, are risking their lives each day, yet lack basic protections to keep them safe and healthy. State and local governments are similarly pushing their resources to the brink to support their residents, and are in desperate need of federal government relief. Half measures to aid those we all rely on most in this crisis will not be sufficient. Congress must provide substantial and sustained relief to state and local governments and directly to all workers on the front lines.

“Repair the Economy by Helping People. This crisis will only be solved by investing in people, first and foremost. Saving our economy from total collapse will require major investments in the health and economic well-being of the workers, small businesses, families and communities who drive our economy, and in order to be effective, must be inclusive of workers who are typically excluded, like restaurant workers, immigrants, and people of color. Instead of hoping that jobs and economic health will trickle down from corporations and the rich, Congress must prioritize getting substantial aid to the people who need it the most.

“Prevent Further Accumulation of Corporate Power. During the last recession, corporations received massive bailouts while continuing the risky behavior that caused the economy to collapse. Corporations, private equity, and payday lenders also moved quickly to profit off of the suffering of millions of families, which made recovery more difficult, particularly in low-income and communities of color. Left unchecked, they will again extract from the public good and exploit marginalized people, which will leave the economy less stable overall — and will likely allow them to concentrate their power as smaller businesses fail. Congress must prioritize shoring up small businesses and institute strong accountability mechanisms and regulations to prevent large corporations from using this moment of crisis to further concentrate economic and political power.”

The following group leaders signed this statement:

Eileen Applebaum, Center for Economic and Policy Research
Brian Kettenring, Center for Popular Democracy
Lorella Praeli, Community Change Action
Dorian Warren, Community Change Action
Thea Lee, Economic Policy Institute
Chris Hughes, Economic Security Project
Natalie Foster, Economic Security Project
Taylor Jo Isenberg, Economic Security Project
Indi Dutta-Gupta, Georgetown Center on Poverty and Inequality
Michael Linden, Groundwork Collaborative
Fatima Goss Graves, National Women’s Law Center
Heather Boushey, Washington Center for Equitable Growth

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

Progressive Group Leaders to Congress: Major Federal Intervention Needed to Meet Scale of Crisis; Congress Must Put People Ahead of Corporations to Save Economy

Washington, DC – Today, leaders of progressive research, policy, and advocacy groups released the following statement calling on Congress to move quickly to pass a robust legislative package that meets the scale of this crisis. The leaders laid out four specific principles that must guide congressional action to ensure that upcoming legislation puts workers, Black and brown communities, and the most vulnerable families ahead of Wall Street and massive corporations. A full list of signers is below.

“The economic crisis sparked by coronavirus has exposed major structural flaws in our economy that made this crisis far worse than it needed to be, and it is clearer than ever that we need major government intervention to stabilize the economy and put us on a long-term path to resiliency.

“We urge Congress to move quickly to pass additional legislation adhering to the following principles to prioritize aiding families and communities, especially Black and brown people who are disproportionately harmed by both the public health and economic crises, and making the structural changes needed to make our economy more resilient in the long term.

“Build Economic Resilience for the Long Term. This crisis has laid bare that decades of rampant inequality, attacks on public institutions, and blind faith in markets to solve public problems has left our economy deeply vulnerable. This crisis is acute in part because millions of families lack good jobs and adequate healthcare—especially the Black and brown families and women who are filling what are only now deemed essential roles in our economy—and because government agencies tasked with pulling people from the brink are operating on threadbare budgets. Congress must address the underlying structural weaknesses in our economy that helped propel this crisis and ensure that the investments made now are durable enough to prevent future crises.

“Reinforce essential responders, including workers, small businesses, and state and local governments. This crisis confirms how workers in traditionally low-paid jobs like warehouse workers, grocery clerks, farm workers, and child care workers are—like health care professionals—essential responders. These workers, disproportionately women and people of color, are risking their lives each day, yet lack basic protections to keep them safe and healthy. State and local governments are similarly pushing their resources to the brink to support their residents, and are in desperate need of federal government relief. Half measures to aid those we all rely on most in this crisis will not be sufficient.
Congress must provide substantial and sustained relief to state and local governments and directly to all workers on the front lines.

“Repair the Economy by Helping People. This crisis will only be solved by investing in people, first and foremost. Saving our economy from total collapse will require major investments in the health and economic well-being of the workers, small businesses, families and communities who drive our economy, and in order to be effective, must be inclusive of workers who are typically excluded, like restaurant workers, immigrants, and people of color. Instead of hoping that jobs and economic health will trickle down from corporations and the rich, Congress must prioritize getting substantial aid to the people who need it the most.

“Prevent Further Accumulation of Corporate Power. During the last recession, corporations received massive bailouts while continuing the risky behavior that caused the economy to collapse. Corporations, private equity, and payday lenders also moved quickly to profit off of the suffering of millions of families, which made recovery more difficult, particularly in low-income and communities of color. Left unchecked, they will again extract from the public good and exploit marginalized people, which will leave the economy less stable overall — and will likely allow them to concentrate their power as smaller businesses fail. Congress must prioritize shoring up small businesses and institute strong accountability mechanisms and regulations to prevent large corporations from using this moment of crisis to further concentrate economic and political power.

The statement was signed by the following organization leaders:

  • Neera Tanden, Center for American Progress
  • Eileen Applebaum, Center for Economic and Policy Research
  • Brian Kettenring, Center for Popular Democracy
  • Dorian Warren, Community Change
  • Sabeel Rahman, Demos
  • Thea Lee, Economic Policy Institute
  • Chris Hughes, Economic Security Project
  • Natalie Foster, Economic Security Project
  • Taylor Jo Isenberg, Economic Security Project
  • Indi Dutta-Gupta, Georgetown Center on Poverty and Inequality
  • Michael Linden, Groundwork Collaborative
  • Fatima Goss Graves, National Women’s Law Center
  • Felicia Wong, Roosevelt Institute
  • Heather Boushey, Washington Center for Equitable Growth

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.

Equitable Growth president and CEO responds to passage of the Coronavirus Aid, Relief, and Economic Security Act

FOR IMMEDIATE RELEASE
March 27, 2020
Contact:
Elena Waskey, 410-598-7532
ewaskey@equitablegrowth.org

WASHINGTON – Today, the president signed the Coronavirus Aid, Relief, and Economic Security Act, providing $2 trillion in federal aid to Americans affected by the coronavirus pandemic and related economic shutdown. The Washington Center for Equitable Growth commends Congress and the president for passing a significant federal rescue package to help families and workers, many of whom are in low-wage jobs serving on the front lines of this crisis.

Importantly, calls for a payroll tax cut and prioritizing the richest households were rejected after economists explained neither would deliver support to families directly affected by the crisis nor provide a now desperately needed macroeconomic boost. Equitable Growth experts, both in-house and those in our academic network, played a key role in ensuring the legislation included as many evidence-based policies as possible.

In particular, the law provides a four-month increase of $600 a week in Unemployment Insurance benefits to everyone who loses their job, including self-employed workers and so-called gig economy workers such as drivers for Uber Technologies Inc. and Lyft Inc. Also included is $350 billion in forgivable loans to small businesses and nonprofits that maintain their existing workforces. This is on top of extensions of paid sick days to many workers—including self-employed and gig workers—in legislation passed on March 18.

Also notable is the law’s commitment to investments that could help prevent a more severe and long-term economic depression. Included in the pandemic relief package is:

  • One $1,200 payment to nearly every American, with phase-outs for high-income earners and a $500 per child bonus for families
  • $150 billion in federal aid to states to help them continue to provide much-needed services during this period of revenue shortfalls
  • More than $180 billion in new spending to support the healthcare sector and communities addressing the coronavirus epidemic

But the law also falls short in some critical ways. First, the two weeks of paid sick leave included in earlier legislation—the Families First Coronavirus Response Act—is not only insufficient, but also allows for many exemptions by small and large employers. An estimated 5 million workers across the United States who work at some of the largest food service and retail employers do not have access to any paid sick days, according to research from The Shift Project. Failure to implement a robust paid sick leave policy during this public health crisis is nothing short of negligent.

Second, nearly $500 billion has been earmarked for corporate bailouts, including hotels, airlines, and other Fortune 500 companies. Though the law includes limits on companies’ stock buyback ability, dividends, and executive compensation, the secretary of the Treasury has the authority to waive those limits. Most notably, employers are under no obligation to keep workers on payroll.

Though changes to unemployment insurance eligibility, aid to small and medium-sized businesses, and direct payments provisions in the legislation are a positive step, it is disappointing that these measures are only temporary and have no ties to the health of the economy. In other words, these provisions will end regardless of whether the country continues to experience a policy-driven recession as a result of necessary social distancing.

Research shows that significant, direct, lump-sum stimulus payments to individuals in response to a recession are effective at boosting the economy, as are steps including ensuring that unemployment insurance reaches all those out of work, sufficient nutrition assistance is available, and that states have the support they need from the federal government to maintain services. Each of these will be required as long as the downturn continues, as outlined in Recession Ready: Fiscal Policies to Stabilize the American Economy, a book Equitable Growth produced with The Hamilton Project. By failing to include a long-term plan in the law, policymakers have missed an opportunity to create durable relief to alleviate this recession and prepare us for the next.

Following is a statement by Heather Boushey, president and CEO of the Washington Center for Equitable Growth:

The coronavirus is first and foremost a public health crisis. In order to address the health crisis, policymakers have essentially put the economy “on ice,” inducing a downturn. Historically high economic inequality, combined with a porous social safety net, has made the United States particularly vulnerable to economic shocks such as the one we’re now experiencing. This economic fragility is a direct result of policymakers prioritizing markets over people for the past 50 years.

I commend Congress and the president for passing the Coronavirus Aid, Relief, and Economic Security Act and now urge them to focus on quick and sound implementation. In particular, federal agencies should not be allowed to create unnecessary carve-outs, drag their feet on provisions that help workers, or pay favors to political allies.

Though the law demonstrates a step in the right direction, there is more work to be done. Specifically, the next federal stimulus package must include permanent paid sick, medical, and caregiving leave; long-lasting and critically needed improvements to the Unemployment Insurance system; automation of direct payments in times of recession so the government can more quickly and easily send out checks; an increase in benefits to the Supplemental Nutrition Assistance Program for needy families; an increase in federal aid to the states; and ongoing support to our nation’s healthcare system.

Further, lawmakers erred by including provisions in the bill that deliver relief to big business without imposing appropriate conditions that ensure the help gets to workers. During the Great Recession, Congress bailed out Wall Street and the Federal Reserve stabilized the stock market, as individuals, families, and small businesses suffered. A straight line can be drawn between those policy choices and the sky-high wealth inequality we now experience, which has made our economy perilously fragile.

People are the foundation of the economy and must be prioritized over profits. Without people to work the jobs and buy the goods and services produced, there is no economy.

The Washington Center for Equitable Growth has developed policy principles for confronting the coronavirus recession, which outline how policymakers should respond to the growing crisis. Additional resources related to the coronavirus recession can be found here.

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The Washington Center for Equitable Growth is a nonprofit research and grantmaking organization dedicated to advancing evidence-backed ideas and policies that promote strong, stable, and broad-based economic growth. For more information, see www.equitablegrowth.org and follow us on Twitter and Facebook @equitablegrowth.