Publication Date: January 2009
Publisher: Center on Budget and Policy Priorities (Washington, D.C.)
Author(s): Chad Stone
Research Area: Economics; Labor
Keywords: Job creation; Low-income families; Economic stimulus
Coverage: United States
In negotiations over the forthcoming economic recovery package, some policymakers have argued that various measures aimed at low- and moderate-income families would serve a "safety net" function but that the package should focus more heavily on creating jobs. This argument reflects a fundamental misunderstanding of the current economic situation and of how economic stimulus works. Some of the proposals that policymakers apparently think of as job creators would actually preserve or create many fewer jobs than other proposals directed at families with low or moderate incomes or unemployed workers.