Even US Republicans and Economist Mankiw Say... "Let's Give $1000 Each"

Romney Proposes Disaster Basic Income for Those Left Out of Support Measures
Mankiw Says Income Support Needed to Enable Social Distancing
Roubini Suggests $1000 for Everyone Including Young Children... 'Can Be Funded by Bond Issuance'

[Asia Economy Reporter Naju-seok] "Let's give $1,000 (1.23 million won) to every adult."

On the 16th (local time), U.S. Senator Mitt Romney proposed a disaster basic income as an additional support measure related to the novel coronavirus infection (COVID-19). The idea is to give cash directly to American adults to prevent the spread of COVID-19 and other issues.

[Image source=Reuters Yonhap News]

Senator Romney said at a press conference, "Expanding paid sick leave support, unemployment benefits, and the Supplemental Nutrition Assistance Program (SNAP) are important, but giving $1,000 directly will help those who cannot quickly find answers from various government measures." He added, "Similar measures were taken by the U.S. Congress in 2001 and 2008," and argued that "the $1,000 will reduce short-term spending burdens on households and workers and increase consumption."

Senator Romney is a prominent politician who ran as the Republican presidential candidate against former President Barack Obama in the 2012 U.S. presidential election.

The American internet media Vox introduced that until a few months ago, the proposal to give $1,000 to American adults was a minority opinion in U.S. politics, but the situation has completely reversed due to COVID-19 and recession concerns. Especially, it was evaluated as a surprising 180-degree turnaround that the Republican Party, which advocates conservatism, is making such a proposal.

[Image source=Reuters Yonhap News]

Earlier, U.S. Representative Tulsi Gabbard, who is participating in the Democratic presidential primary, also introduced a resolution proposing to give $1,000 every month to all American adults until the COVID-19 emergency ends.

Previously, the U.S. Congress and government have been reviewing support measures worth $8.3 billion related to COVID-19. However, voices have grown in the U.S. that tax cuts such as payroll tax reductions are insufficient and that cash should be given directly.

Gregory Mankiw, a Harvard University professor famous for "Mankiw's Economics," also agreed with the argument that cash should be given directly to citizens. He explained that such measures are not for economic stimulus purposes but for 'social distancing.' It is necessary to help those who cannot stay home due to livelihood reasons to also engage in social distancing.

Professor Nouriel Roubini of New York University, who predicted the global financial crisis, argued that $1,000 should be given not only to adults but also to children. Professor Roubini stated on Twitter, "(Giving $1,000 each) would cost about $35 billion, but this is less than 2% of the U.S. Gross Domestic Product (GDP)," and added, "The funds can be raised solely through bond issuance."

This content was produced with the assistance of AI translation services.