The Progressive


A project of Common Dreams

For Immediate Release

Growing Consensus That Economy Needs Massive Federal Investments

This week Groundwork released an important new paper from economists Dr. Mark Paul and Dr.


This week Groundwork released an important new paper from economists Dr. Mark Paul and Dr. Adam Hersh entitled "How Much Emergency Relief Will it Take to Revive the U.S. Economy?" This new paper reflects a consensus that is becoming increasingly clear among experts and economists: the economy needs massive federal investments to recover and get back on track, and the dollar amounts being discussed by Congress right now are not nearly large enough to do the job. Other recent papers reflecting this emerging consensus include:

The new paper from Dr. Mark Paul and Dr. Adam Hersh was written up in this great Vox piece, "What it would really take to save the economy: About four times what Congress is currently proposing, according to one estimate" along with other outlets. Key excerpts from the Vox piece include:

"...according to a new paper from economists Adam Hersh and Mark Paul commissioned by the Groundwork Collaborative -- a progressive economic think tank -- really reviving the United States economy could require three, even four times that: The pair estimates Congress would need to pass $3 to $4.5 trillion in economic relief in the near term to get the economy to reach its full potential."

"...the main takeaway is that Congress should inject a lot of money -- and do it fast -- to repair the damage caused by two recessions arriving over the span of about a decade. One important lesson from the Great Recession is that fiscal stimulus efforts fell short, and in turn, the recovery was slow..The US risks making the same mistake now, particularly if Congress doesn't spend enough money to really boost the economy and get the unemployment rate so low that workers are pulled back into the market."

"Ultimately, the economy is made up of people, people are hurting, and lawmakers aren't helping them. Past recessions have made it clear that recovery can take a long time, meaning today's inaction will be a drag on the country, and financial problems for its people, for years to come."