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Federal Reserve Finds Paycheck Protection Program Ineffective

Is anyone surprised? When you hear about inflation and worker's raises causing inflation, keep this in mind. Average stimulus amount per worker – $3,450 Average PPP Loan Amount – $59k ​ Major points: The PPP was not well targeted. Only about one-quarter of PPP funds supported jobs that otherwise would have disappeared. The study found that the PPP’s benefits flowed disproportionately to wealthier households rather than to the rank-and-file workers that its funds were intended to reach. https://www.stlouisfed.org/publications/regional-economist/2022/jul/was-paycheck-protection-program-effective


Is anyone surprised? When you hear about inflation and worker's raises causing inflation, keep this in mind.

Average stimulus amount per worker – $3,450

Average PPP Loan Amount – $59k

Major points:

  • The PPP was not well targeted. Only about one-quarter of PPP funds supported jobs that otherwise would have disappeared.
  • The study found that the PPP’s benefits flowed disproportionately to wealthier households rather than to the rank-and-file workers that its funds were intended to reach.

https://www.stlouisfed.org/publications/regional-economist/2022/jul/was-paycheck-protection-program-effective

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