• The American Rescue Plan signed by President Joe Biden allocates state and local aid based on the extent of unemployment in a state in late 2020. Critics say this punishes states that opened their economies earlier, under the assumption that their unemployment levels were lower.
• It’s not so clear-cut. Preliminary academic research shows that government policies on reopening had only a modest impact on unemployment. States that depend on especially hard-hit industries like tourism and oil and gas show high unemployment regardless of the government policy.
• Experts say that no method for targeting aid to the states is perfect; each has pluses and minuses.
Author(s): Louis Jacobson
Publication Date: 19 March 2021
Publication Site: PolitiFact