The Real Economy: Volume 73
Late-year 2020 fiscal aid lifts growth prospects for 2021
THE REAL ECONOMY |
Last month Congress passed a $2.3 trillion year-end spending bill which included a $900 billion rescue package to provide direct fiscal aid to households and businesses. The aid package will likely bolster U.S. growth conditions in the first half of 2021, hopefully preventing another economic downturn. While we anticipate that the new aid will temporarily boost both household consumption and savings, it is not sufficient to bolster long-term growth prospects for the economy. The legislation was passed too late, is too limited and expires too soon to offset the adverse economic impact caused by the intensification of the pandemic and the resulting pullback by the public and lockdowns around the economy. As a result, the aid package is not a stimulus bill, it is a rescue bill, and the economy will likely require another round of aid shortly.
In this month’s The Real Economy, we examine the current rescue aid and its impact on sectors, institutions and the marketplace. In addition, we explore the issue of racial equity in the middle market, the wage environment, the vaccine and senior housing, manufacturing and trade, and remote work trends. Download the full report.
IN THIS ISSUE
Aid package will bolster U.S. growth conditions in the first half of 2021, likely preventing another economic downturn previously implied.
A critical conversation is needed in corporate America to address the racial wealth gap and inequity embedded in the U.S. economy.
The economic distortions of the pandemic are becoming increasingly evident in the divergent fortunes of U.S. workers.
A coronavirus vaccine cannot come soon enough for the operators of facilities that house the nation’s elderly.
How can businesses navigate the current geopolitical environment? Businesses want certainty and for their investments to be protected.
Until a significant amount of the population is vaccinated, widespread remote work will continue to be a standard practice for businesses.