As Congress and the White House debate over the next round of
pandemic financial relief, it's an opportune moment to ask an
uncomfortable question: Is it possible for such relief measures to
be excessive, misdirected or wasteful?
Many politicians and economists believe not. Put them in the
"whatever it takes" camp. Fed Chair Powell is among those
who believe another round of stimulus is essential to sustain a
stalling recovery and cannot be overdone.
Powell recently stated, "Too little support would lead
to a weak recovery, creating unnecessary hardship for households
and businesses... By contrast, the risks of overdoing it seem, for
now, to be smaller. Even if policy actions ultimately prove to be
greater than needed, they will not go to
waste."1 Many in Washington share this
sentiment.
