A North Texas economist has criticism of the huge Covid 19 stimulus bill.
SMU business professor Mike Davis says the $1.9 trillion measure it isn't targeted enough. Davis says some businesses need help more than others. "Restaurants and hotels, they're clearly suffering because of the pandemic. But other kinds of businesses are operating just fine, and as far as I can tell it's very unselective as to where the where the help is being spent."
Davis worries about giving money to people who don't need it and aren't giving it to people who do.
He says "there's something to be said for the unemployment compensation scheme, although that's difficult too because you don't want to create disincentives for people to come back to work, but you definitely want to support people who can't go back to work." His biggest piece of advice; quit worrying about the relief package and worry about the vaccinations manufactured and in people's arms. "We've been saying since April. The recession is going to be over when the pandemic is over." He wants to see more money spent on manufacturing and vaccinating."
This week President Biden signed an executive order to boost Government purchasing from US manufacturers.
Davis says that won't be of much help. He says it sends the wrong signal to our international partners. "That we are going to protect American businesses, and that means they can protect their businesses, which is never good really. It also makes it more expensive for the government to do their business.
He calls the intent of the order, political.