Some economists warn that the economy could begin to shrink again if Congress doesn’t act. Many households were able to save in the spring, thanks to federal aid and shutdown orders that kept them from spending money on restaurant meals and hotel stays. There is an alarming precedent for what happens when support fades in the midst of an uncertain economic moment. But Mr. Obama was unable to win approval for further large-scale stimulus efforts, and by 2010 Congress had effectively ceded to the Federal Reserve the job of managing the still-tenuous economic recovery. Another slump ensued across European economies, bringing with it years of high unemployment, low inflation and weak growth.

Source: New York Times September 24, 2020 15:48 UTC