Axios' Felix Salmon (left) and Rep. Pramila Jayapal. Photo: Axios

The Paycheck Recovery Act could serve as an "automatic stabilizer" in future unemployment crises like the coronavirus pandemic by offering direct grants to affected businesses, the bill's sponsor, Rep. Pramila Jayapal (D-Wash.), said Wednesday at an Axios virtual event.

The big picture: Under Jayapal's proposal, which has bipartisan support and is under consideration in the House Financial Services Committee, the federal government would subsidize the benefits and salaries of qualified workers if unemployment hits 7% or higher. The intent is to limit the number of people filing jobless claims.

  • Overwhelmed unemployment systems are backlogged, causing delays in some benefits.
  • The proposal would be permanent and would not require congressional approval for each round of grant distributions.

What they're saying: "When you overload an already diminished system of unemployment, you essentially limit a whole bunch of people from getting any kind of support."

  • "So if you do the Paycheck Recovery Act, and you expand unemployment, and you provide additional relief... that would have been the kind of comprehensive package where perhaps we could have kept unemployment numbers lower...."

Watch the event, "Reimagining capitalism in America."

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Dion Rabouin, author of Markets
Oct 21, 2020 - Economy & Business

Why the stimulus delay isn't a crisis (yet)

Illustration: Aïda Amer/Axios

If the impasse between House Speaker Nancy Pelosi and the White House on a new stimulus deal is supposed to be a crisis, you wouldn't know it from the stock market, where prices continue to rise.

  • That's been in no small part because U.S. economic data has held up remarkably well in recent months thanks to the $2 trillion CARES Act and Americans' unusual ability to save during the crisis.

Pelosi says Trump is "delusional" for thinking GOP will win the House

House Speaker Nancy Pelosi (D-Calif.) called President Trump "delusional" on CNN's "State of the Union" Sunday for predicting Republicans will win the majority in the House of Representatives.

Why it matters via Axios' Alayna Treene: It's not clear who is telling Trump the GOP has a shot at winning back the House, but most congressional Republicans privately acknowledge that remaining in the minority is a foregone conclusion. The real question is how many seats they lose.

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White House Chief of Staff Mark Meadows defended Vice President Pence's decision to continue traveling and campaigning despite his exposure to aides who have tested positive for COVID-19, saying Sunday that Pence is exempt from CDC guidelines because he is "essential personnel."

Why it matters: CDC guidelines call for people who have been exposed to the virus to quarantine for 14 days. Meadows said on CNN's "State of the Union" that Pence will wear a mask when he travels and argued that "he's not just campaigning," pointing to the Israel-Sudan normalization agreement announced by the White House last week.