This is why I've been focused on the household-level justification for more relief than the economy-wide level. Household incomes are up this year, employment for more affluent people is basically back to normal, this supports consumption and residential investment.https://twitter.com/JWMason1/status/1321812872167608321 …
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There are a lot of lower-income households where unemployment benefits running out is eating up the savings from the spring and the summer. They need relief. But this isn't a problem you'll see flashing hugely in the GDP data, because these households consume less already.
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I do think people overrate the risk that the economy will be dragged down for years to come due to weak consumer demand. The middle-to-upper parts of the income spectrum are not digging out from a home price crash like last time. Their spending will power the recovery.
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Replying to @jbarro
Households in aggregate have $1.8T more in savings deposits than before Covid, due to stimulus payments and savings from lower spending on services. Once people can spend again, I'm expecting a gigantic release of pent-up demand.
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Pent up demand after a pandemic? What an idea, right? Pretty amazing how people have forgotten about the Roaring Twenties, similar to the way everybody tried hard to forget about the 1918 pandemic right after it ended.
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