On election night, Democratic campaign consultants may have been wondering, “Where did all these voters come from?” But unless the next Congress sets a legislative course over the next few months, Speaker of the House Nancy Pelosi may soon be wondering, “Where did all the voters go?”
The incoming Biden administration will need to navigate an extremely rough economic path ahead. Congress has struggled to reach an agreement for another round of stimulus to provide emergency relief for families and businesses. Now they must act before the “dark winter” ahead further deteriorates the economic recovery.
As a Workplace Possibilities program coordinator with The Standard, Meier helps employers by designing, implementing and managing on-site vocational services to assist employees in remaining at and/or returning to work and by providing ergonomic training. He also plays a lead role by coordinating and providing ergonomic assessments and accommodations for internal employees. He holds a master’s degree in rehabilitation counseling and education, is a certified rehabilitation counselor and disability management specialist, and is a Certified Ergonomics Evaluation Specialist. His background truly helps guide his work, as he has experience working with disabled veterans and injured workers, as well as vast knowledge in ergonomics, counseling and aptitude testing.
Mincemoyer joined Reed Smith in 2016 as an associate in the Tax, Benefits & Wealth Planning Group. Shannon’s practice involves general employee benefits and executive compensation matters.
Atkin joined Reed Smith in 2009 and is a member of the firm's Tax, Benefits & Wealth Planning Group. Prior to joining Reed Smith, Lori had over 23 years of experience with qualified retirement plan counseling at large consulting firms, and brings a consultant's practicality to her profession in addition to her legal knowledge and experience. Lori has been involved in all aspects of qualified plans, including design, drafting, compliance, government filings, communications, and administration. In addition to her qualified plan expertise, Lori has had significant experience with mergers and acquisitions and nonqualified plans.
Gross domestic product, the broadest measure of goods and services produced across the economy, decreased at an annual rate of 32.9 percent in the second quarter of 2020, followed by a surged of 33.1 percent in the third quarter, in part due to earlier rounds of fiscal stimulus when businesses were offered Economic Injury Disaster Loans and forgivable Paycheck Protection Program loans, and individuals received direct payments and extended unemployment benefits.
Economic experts believe the current surge is not enough to stop continued losses incurred by various segments of economy.
“While the strong bounce back in activity from the initial devastation of COVID-19 was heartening, the recovery thus far has been highly uneven, and the path ahead is highly uncertain,” said Federal Reserve Governor Lael Brainard in a speech last month at the Society of Professional Economists annual online conference.
This highly uneven and uncertain bounce indicates the prospect of a K-shaped recovery, where some sectors continue to recover, while others see a steady decline.
The new stimulus package must focus on the sectors facing difficulties ahead to avoid colossal damage and massive layoffs.
According to the U.S. Chamber of Commerce, approximately 4 million small businesses — 13 percent of America’s 31 million smallest employers — have now exhausted their PPP loans, and many face permanent closure without further assistance.
According to the National Restaurant Association, the restaurant industry will lose $240 billion. U.S airlines may be forced to furlough 75,000 pilots, flight attendants, mechanics and other workers by the end of 2020 if Congress doesn’t act.
States and municipalities are now on verge of extreme shortfalls due to declines in tax revenues and rises in additional costs. Local governments that fund and operate public school systems will need more funding. “The average school district will face $1.8 million, or $485 per student, in additional costs for disinfectants, personal protective equipment and other preparations to bring students into classrooms this year,” according to the Association of School Business Officials.
The Federal Reserve’s Survey of Consumer Finances indicates that cash-strained households will continue to suffer as a result of continued unemployment and reduced working hours. The CARES Act did support these households either through direct payments or enhanced unemployment benefits this year, but the financial security of these households will depend on whether unemployment benefits will be extended or supplemented next year.
Therefore, it is imperative for Congress to ensure that the recovery reaches those who have been disproportionately affected. A targeted fiscal support can turn a K-shaped recovery into a broad-based, inclusive recovery to eliminate shortfalls in employment and provide a better outcome overall.
