Structuring Federal Aid To States As An Automatic (and Autonomous) Stabilizer
The federal government should provide support to state governments during economic downturns in the form of block stabilization grants that serve to replace lost tax revenue.
The Unemployed Were Far From the Only Workers Ravaged by the Downturn in March
Between mid-February and mid-March, the number of Americans unemployed grew by 1.4 million. But the rise in Americans reporting any type of labor market disruption — absence, wanting more hours, or not having a job at all — was almost four times that number: 5.6 million.
Unemployment will rise. But it won’t tell the whole coronavirus story.
The coronavirus shock will lead to a dramatic spike in the unemployment rate. But even this surge could understate the true labor market damage from the virus.
