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The big need now is to get another slug of fiscal aid to the states.
"The amount of additional fiscal aid needed for Greece is not that great," he said.
The situation cries out for policies to support economic growth — specifically jobless benefits and fiscal aid to states.
At first, the federal government stepped in, with the 2009 stimulus bill, and sent fiscal aid to states.
The House stripped a provision for $24 billion in state fiscal aid from its earlier spending bill.
More effective options include fiscal aid to states and increased safety net spending, which create jobs by bolstering consumer demand — and which Republicans fiercely oppose.
Similar(35)
The 50 states appropriated a total of $91.5 billion to support their public universities and financial aid programs in Fiscal Year 2018-19.
The goal of the Leadership Challenge is to encourage others to support financial aid and stabilize the long-term fiscal requirements of Harvard's leading financial aid program.
The federal stimulus has given states nearly $200 billion over the past two years; by the end of this fiscal year, aid will all but dry up.
According to the Economist, it is in a "comfortable" fiscal situation, "aided by a strongly growing economy will help to reduce the deficit without tough public spending cuts or tax rises".
The Italian government is applying fiscal Band-Aids to its deficit instead of surgery, while there is new budgetary pressure on Rome and Madrid, considered too big to bail out.
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