• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
Financestimulus

Top economists say this is what’s on their stimulus wishlist—and the bipartisan bill looks pretty close

Anne Sraders
By
Anne Sraders
Anne Sraders
Down Arrow Button Icon
Anne Sraders
By
Anne Sraders
Anne Sraders
Down Arrow Button Icon
December 4, 2020, 9:00 PM ET
For the latest information on the ongoing stimulus negotiations, please check out our coverage here.

It’s been clear in the data for a while: The economic recovery is slowing. At the same time, the window for more stimulus to help boost that recovery is narrower than ever.

That decelerating pace was even more evident in the unemployment data released Friday, showing only 245,000 jobs were added in the month of November—dropping the unemployment rate from 6.9% to 6.7%.

The report comes as Congress is making progress on a new $908 billion stimulus bill, this time with bipartisan support. Even House Speaker Nancy Pelosi, who has long pushed for several trillion dollars in aid, has said the the smaller bill is a good jumping off point for further negotiations.

But with the slowing pace of the economic recovery and a winter without a widely-distributed vaccine, some economists are feeling exasperated with Capitol Hill: “C’mon, already!” exclaims Moody’s Analytics chief economist Mark Zandi.

“If we don’t get that help, [Friday’s unemployment] report suggests that the economy is going to start backtracking, we’re going to start losing jobs, and unemployment will start rising again,” Zandi tells Fortune. Without more stimulus, “There’s a pretty good chance this will go down in history as a double-dip recession,” he believes.

Michelle Meyer, head of U.S. economics at Bank of America, is slightly more optimistic: “There’s a clear economic case for the stimulus, but I think it’s important to remember that the economy has continued to recover, has continued to heal,” she tells Fortune. “Another round of stimulus will simply speed up that healing process in a way that could be very powerful for the trajectory of growth once we have the vaccine.”

But what’s on economists’ wishlists for a stimulus bill to bridge the gap between an ailing economy and a vaccine-liberated one?

Top stimulus priorities

For Bank of America’s Meyer, a few things top the list: More funds for testing and a vaccine (“clearly number one,” she says), pandemic unemployment insurance (which includes expanded groups like freelancers and gig workers who are due to lose access next year), and aid for small businesses make up her top three.

In a broader sense, “the first priority is, bottom line, those households who don’t have a job, don’t have any savings,” says Moody’s Zandi.

He agrees that more money for the unemployed, testing, and small businesses is crucial, and that rental assistance, support for transportation like airlines, and state and local funding are also key: “Those are all, I think, things that are necessary to bridge the economy to the other side of the pandemic,” he states.

Liability insurance, a key Republican ask, and state and local funding, a Democrat sticking point, are both good ideas, Zandi says. And Meyer thinks “ultimately to get a bill through, they’re going to have to have a little bit of both.”

To be sure, that all adds up pretty quickly. But the latest bipartisan proposal ticks a lot of those boxes for Zandi and Meyer.

The bipartisan proposal currently includes $180 billion for enhanced unemployment benefits, $288 billion in small business funding, $16 billion for testing and the vaccine, and $25 billion in rental assistance (Plus, some $180 billion for state and local funding).

As a bridge to the other side of the pandemic, “I think they got it right,” says Zandi.

In addition to unemployment and small business support, Zandi argues rental assistance is also a critical component to another deal, especially with eviction moratoriums expiring at the end of the year. “That has a very heightened-level need because either you’re going to have people getting evicted in the middle of winter, in the middle of a raging pandemic, or you’re really sticking it to a lot of mom-and-pop landlords,” he notes. “That’s not that expensive, so, check.”

Certainly the price tag is much lower than the Democrats’ previous $2.2 trillion mark and above Republicans’ $500 billion deal, but economists like Meyer argue roughly $1 trillion of stimulus is “probably appropriate to get us through the next few months.”

‘Blanketed’ stimulus checks aren’t essential

One thing that’s not on Zandi or Meyer’s wishlist? More stimulus checks. The new bipartisan bill notably doesn’t include more $1,200 direct payments, which has already caused a stir among some in Washington, including President-elect Joe Biden and Sen. Bernie Sanders. But economists like Meyers and Zandi argue now more “targeted” support is needed.

“There are very clear differences in how people are faring,” from those who have been able to keep their jobs versus those struggling with unemployment or in hard-hit industries, “so I don’t think we need to have a blanket stimulus check at this point,” Zandi believes.

Whatever the particular line items, a smaller bill looks more likely now (versus the $2.2 trillion or $3 trillion asks from Democrats earlier this fall) because of the time crunch: Congress has until Dec. 11 to pass a spending bill and additional stimulus, and Republicans likely won’t sign a massive deal.

Adds Zandi: “At this point, sooner rather than bigger, is better.”

About the Author
Anne Sraders
By Anne Sraders
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

t
PoliticsWhite House
Trump was supposed to talk about the economy. Instead he asked why toiletries are locked up in pharmacies
By Nick Lichtenberg, Seung Min Kim, Darlene Superville and The Associated PressMay 23, 2026
37 seconds ago
fda
BankingTobacco
FDA’s tobacco center just drafted new rules to let ecigs, pouches onto market, but staffers didn’t write them
By Matthew Perrone and The Associated PressMay 23, 2026
7 minutes ago
w
BankingFederal Reserve
Trump on new Fed Chair Kevin Warsh: ‘Do your own thing’ but don’t lose your way like Jerome Powell did
By Will Weissert, Michelle L. Price and The Associated PressMay 23, 2026
11 minutes ago
Mel Robbins
SuccessGen Z
Millionaire podcaster Mel Robbins hits back at Gen Z’s lazy label—she says they’re stuck in a world their baby boomer parents wouldn’t even recognize
By Emma BurleighMay 23, 2026
2 hours ago
employees
CommentarySuccession
Millions of business owners are about to retire. They should sell to their employees
By Matt Helmer and Maxwell JohnsonMay 23, 2026
4 hours ago
Kevin Warsh, chairman of the US Federal Reserve nominee for US President Donald Trump, is sworn in during a Senate Banking, Housing, and Urban Affairs Committee confirmation hearing on April 21, 2026 in Washington, DC.
EconomyKevin Warsh
‘I almost fell out of my chair’: Fed stalwart Claudia Sahm fears Kevin Warsh’s policies could undo 20 years of policy progress
By Eleanor PringleMay 23, 2026
4 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
2 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
23 hours ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
22 hours ago
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
Success
Despite a $500 million net worth, Shaq just finished his fourth degree. He warns graduates: 'Your character will take you further than your resume'
By Preston ForeMay 20, 2026
3 days ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
1 day ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.