The United States government struggled with the COVID-19 recovery bill to address the recession the government created. It will not be implemented but here is my proposal (skip to #5 below if you are in a hurry).
1) The bill that is being considered is enormous and highly inefficient. It will get passed anyway.
2) We should not subsidize state and local governments. They made the decision to go into recession, their revenues are protected (utilities, property taxes, income taxes). Sales tax has exposure, but it has always been more volatile than income and property taxes.
3) We should not subsidize businesses or industries. Their assets will be bought and the human capital will not be destroyed. Let the situation play out with investors and creditors.
4) We should not try and solve the situation through unemployment insurance. It is too bureaucratic. The money will not get distributed when it is needed, and then too much will get distributed when it is not needed.
5) There are approximately 130 million households in the United States. Congress will approve an astounding $2 trillion dollar package. That is $15,000 per household. Why not send every household $15,000? The IRS can claw back unneeded funds on next year’s tax return for those who do not lose their job and who make over $100,000 per year. If someone loses their job or does not make over $100,000 per year, then let them keep the money.
We are a consumption based economy. The business sector will weather the recession if consumers are not scared and broke. The payments will allow everyone to either get through the next couple of months or have some reserves set aside. Those who don’t end up needing it can return it on the next tax return. The rest of the country will be set to deal with the recession the government created. This solution can be executed fast, it is easy to implement, and easy to administer.