White House economic advisor Larry Kudlow said the economy is rebounding “very, very strongly” and would continue to do so, Reuters reported.
Kudlow said he wasn’t concerned about the effects of a second COVID-19 wave on the economy, explaining, “The hope is that the decline in cases and fatalities will continue. That’s the great hope,” according to Reuters.
Kudlow’s opinion was that the number of Americans practicing social distancing, wearing masks and regularly washing their hands would help the virus stay at bay.
He said there would be fresh financial aid for unemployed Americans within the next week or two, Reuters reported. Congress is currently still at odds over the fate of the next stimulus package, with Republicans calling for around $1 trillion, while Democrats are asking for $3 trillion. The two parties differ in wants, too, with Republicans asking for liability protections, while Democrats are pushing for expanded unemployment benefits.
Kudlow called the recovery trajectory “V-shaped,” meaning that while it slid sharply down due to the virus, it was now equally sharply rising back to where it had been before the pandemic, Reuters reported. He said the White House is examining how the payroll tax cut put in place by President Donald Trump could be forgiven. The payback could occur within five to eight years, as the budget window was 10 years, and the amount in question was around $1,100 per worker.
“As far as the payback is concerned, … you could stretch that out over a long period of time,” Kudlow said, according to Reuters. “So, the payback won’t be immediate, and no one will be hurt.”
Kudlow has said he is against continuing unemployment benefits of $600 per week, arguing like many Republicans that such a measure would disincentivize people to go back to work. Instead, he has said it is possible there could be extra cash incentives for people to return to work as the country begins to open back up.
