Congress's Covid-19 rescue plan was bigger than the new deal. It's about to end.

Author: Leigh Lynes

The [CARES Act] authorized hundreds of billions in spending on expanded unemployment benefits and stimulus checks to support the millions of workers who lost their jobs once pandemic lockdowns began. The result was that the lowest-income Americans barely saw their spending fall once federal support kicked in. Despite the crisis, poverty did not increase, and might even have fallen.

Longtime poverty research duo Bruce Meyer of the University of Chicago and James X. Sullivan of Notre Dame, collaborating with UChicago scholar Jeehoon Han — found that in April and May, the estimated poverty rate covering the previous 12 months was 8.6 percent compared to 10.9 percent in January and February, suggesting that poverty actually fell after the Covid-19 pandemic hit, almost certainly due to the overwhelming federal response.

Read more.