Economists from across the spectrum are united in their calls for federal aid for state and local governments whose budgets have been decimated by the coronavirus this year. A recent press call organized by the Economic Policy Institute demonstrated this coalition when it brought together five economists from both liberal and conservative backgrounds to discuss the need.
“State and local governments desperately need financial support,” said Mark Zandi, a former adviser to Republican Senator John McCain’s presidential campaign, adding that state aid should be “priority number one” for Congress.
“I can’t imagine a successful next [aid] package without that,” noted Jason Furman, who served as chair of the Council of Economic Advisors under President Barack Obama.
“There is no logic to the argument that you shouldn’t assist state and local governments,” said Glenn Hubbard, who served as chair of the Council of Economic Advisors during the George W. Bush administration. Gbega Ajilore, a senior economist at the Center for American Progress, added that state and local aid is especially crucial for “left-behind communities.”
Governors of both parties are aligned in their championing of federal aid for states, but partisan congressional disagreements are currently holding up a commitment to providing the funding.
Read more about the opinions of the economists mentioned and the need for federal state and local aid here.