Despite an agreement reached Tuesday in Washington D.C. to restore funding to the Paycheck Protection Program (PPP), there is still a glaring omission in the federal government’s response that has one former economic adviser to President Obama particularly worried.
That same worry is shared by governors around the country who have begun advocating for their respective states, highlighting that budget shortfalls in the multibillion dollar range could lead to disastrous spending cuts at the worst possible time. It’s the same that President Obama’s former Council of Economic Advisers Chair Jason Furman saw play out firsthand during the recovery from the Great Recession. Now, it’s also a mistake he’s imploring the government to avoid repeating now.
“The biggest omission in the federal response so far is assistance to states and assistance to localities,” Furman, now an economics professor at Harvard, explained on Yahoo FInance’s YFi PM. “The basic economic logic of