In a survey published by Scioto Analysis this morning, 25 of 29 Ohio economists agreed that targeting checks at households making less than $75,000 per year would be more cost-effective at boosting the economy than providing checks to higher income households as well.
Economists who agreed with the statement said that lower-income households are more likely to spend stimulus payments rather than save them. They also acknowledged the complexity and difficulties that come with targeting funds. Of the four economists who did not agree with the statement, comments focused on priorities of these payments, suggesting relief, savings, and response can be more important than cost-effectiveness of economic stimulus.
Respondents were more split on a question in the survey asking whether stimulus should focus on keeping low-income individuals and families safe rather than on boosting current economic activity. 15 economists agreed with the statement and 12 disagreed, while only two were uncertain. In comments, however, both those who agreed and disagreed with the statement said the two goals can go hand in hand.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.
If you would like to suggest a question for a future Ohio Economic Experts Panel, email your ideas to panel@sciotoanalysis.com.