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 chief financial officer at Certinia, Erin Sawyer brings over 20 years of financial and operational experience with 10 years in the software industry. Most recently, she was the CFO of Wowza and deputy CFO at Vertafore. She specializes as an executive strategist focusing on financial and operational discipline through business partnership, value creation and operational excellence. She graduated from North Carolina State University with her MBA and Arizona State University with a degree in accountancy.
Keely Wilkins is the Global Program Manager for Insurance Partnerships, and an Evangelist with the Office of the CTO at Check Point Software Technologies. She has nearly 30 years of experience in technology and cybersecurity. Keely is active in global initiatives like the World Economic Forum's Partnership Against Cybercrime and frequently speaks on AI, cyber insurance, and cyber risk management. She holds a MS in Cybersecurity and an MLS in Cybersecurity Law and Policy.
Jen Cressman is the chief commercial officer at Form Health, the national leader in science-based obesity care.
Jen is a veteran of the healthcare industry, building and leading exceptional sales teams at dynamic, innovative companies. Jen has been leading Form Health through rapid commercial growth since May 2023, focusing on leveraging the physician-led, science-based obesity care model to guide clients through the challenges and opportunities of GLP-1s.
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.
