Policies to Help the Working Class in the Aftermath of COVID-19: Lessons from the Great Recession [open pdf - 973KB]
From the Abstract: "The COVID-19 [coronavirus disease 2019] pandemic and the associated government mandated shutdowns caused a historic shock to the U.S. economy and a disproportionate job loss concentrated among the working class. While an unprecedented social safety net policy response successfully offset earnings loses among lower-wage workers, the risk of continued and persistent unemployment remains higher among the working class. The key lesson from the Great Recession is that strong economic growth and a hot labor market do more to improve the economic wellbeing of the working class and historically disadvantaged groups than a slow recovery that relies on safety net policies to help replace lost earnings. Thus, the best way to prevent a 'K-shaped' recovery is to ensure that safety net policies do not interfere with a return to the strong pre-pandemic economy once the health risk subsides, and that pro-growth policies that incentivize business investment and hiring are maintained."
AEI Economics Working Paper 2021-03
2021 Richard V. Burkhauser, Kevin C. Corinth, and Douglas Holtz-Eakin. Posted here with permission. Documents are for personal use only and not for commercial profit.
American Enterprise Institute: https://www.aei.org/