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Our austerity addiction will destroy us
The coronavirus outbreak demands a huge, costly intervention, but deficit hawks can’t kick their means-testing habit
There are no atheists in foxholes, and there are no deficit hawks in an economic meltdown—or at least there shouldn’t be.
With the worst epidemic in a century unfolding and the prospect of a depression looming, decisive action by the federal government is urgent. Yet, Washington remains as paralyzed as ever, with politicians in Congress inexplicably agonizing over how to pay for it.
When it came to financial markets, the response was swift— the Fed injected $1.5 trillion to tackle last week’s crash—but efforts to bail out Main Street have stalled.
Given that roughly two-thirds of Americans can’t afford a $500 emergency, the unprecedented economic disruption brought by the coronavirus pandemic threatens to leave tens of millions in crisis. Bars and restaurants are shuttered. Unemployment claims are soaring. Rent is almost due.
While most politicians agree some sort of relief is needed for working Americans facing layoffs, evictions and food insecurity, there are major fissures about what form it should take. And the debate isn’t breaking down neatly along party lines.
