{"id":1545739,"date":"2022-07-09T08:20:15","date_gmt":"2022-07-09T12:20:15","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1545739"},"modified":"2022-07-09T08:20:17","modified_gmt":"2022-07-09T12:20:17","slug":"poorly-targeted-800-billion-paycheck-protection-program-only-reached-25-percent-of-employees-study","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/poorly-targeted-800-billion-paycheck-protection-program-only-reached-25-percent-of-employees-study\/","title":{"rendered":"\u2018Poorly Targeted\u2019 $800 Billion Paycheck Protection Program Only Reached 25 Percent of Employees: Study"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpoorly-targeted-800-billion-paycheck-protection-program-only-reached-25-percent-of-employees-study%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1545739&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A multi-billion-dollar pandemic-era stimulus program meant chiefly to help small businesses keep staff on the payroll and hire back laid off employees was poorly targeted, with only about one-quarter of the money supporting jobs that would otherwise have disappeared, a new Fed report shows.<\/p>\n<p>Lockdowns and a collapse in consumer spending during the first wave of the pandemic drove fears that America\u2019s small business sector was at risk of a collapse.<\/p>\n<p>This\u00a0prompted lawmakers in Congress to adopt a series of relief measures, including\u00a0the <a href=\"https:\/\/www.theepochtimes.com\/t-paycheck-protection-program\">Paycheck Protection Program<\/a> (PPP), which directed roughly $800 billion in forgivable loans to small businesses and other organizations hit by the crisis.<\/p>\n<p>At least 75 percent of the PPP funds were intended to maintain payrolls or hire back laid off employees and the remaining share could be earmarked for overhead costs like rent and utilities.<\/p>\n<p>But was this money well spent? That\u2019s the question researchers at the Federal Reserve Bank of St. Louis sought to answer in their <a href=\"https:\/\/www.stlouisfed.org\/publications\/regional-economist\/2022\/jul\/was-paycheck-protection-program-effective\">July 6 study<\/a>, which arrived at an unflattering conclusion.<\/p>\n<p> Was This Money Well Spent? <\/p>\n<p>The study, jointly authored by William Emmons, lead economist in the St. Louis Fed\u2019s Supervision Division, and Drew Dahl, an economist at the St. Louis Fed, argues that the PPP program was a \u201ccritical but imperfect policy.\u201d<\/p>\n<p>While the PPP did save around 3 million jobs at its peak in the second quarter of 2020, the scheme was badly targeted and rather regressive, with a huge portion of the benefits accruing to unintended recipients.<\/p>\n<p>\u201cIt was poorly targeted, as almost three-quarters of its benefits went to unintended recipients, including business owners, creditors and suppliers, rather than to workers,\u201d the pair of economists wrote.<\/p>\n<p>\u201cDue to differences in the typical incomes of those varied constituencies, it also ended up being quite regressive compared with other major COVID-19<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A multi-billion-dollar pandemic-era stimulus program meant chiefly to help small businesses keep staff on the payroll and hire back laid off employees was poorly targeted, with only about one-quarter of the money supporting jobs that would otherwise have disappeared, a new Fed report shows. Lockdowns and a collapse in consumer spending during the first wave [\u2026]<\/p>\n","protected":false},"author":118,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1545739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1545739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1545739"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1545739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1545739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1545739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1545739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}