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The Indicator from Planet Money

Could cash payments ease recessions?

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 5 February 2024

⏱️ 11 minutes

🧾️ Download transcript

Summary

Although we have dodged the bullet for now, the threat of a recession is always a concern for policy makers. The question is: will we be prepared next time? In this episode, we consider an alternative approach to stabilizing the economy during a recession through automatic monthly cash payments. The hope: faster relief, a reduced racial wealth gap and predictable income. Can it work?

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Transcript

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0:00.0

NPR This is the indicator from planet money. I'm Darien Woods and I'm Whelan

0:15.6

Wong. When there's a recession the usual tendency for policy makers is to

0:20.8

scramble. There's a flurry of tax cuts or emergency aid for families and

0:25.9

businesses. These moves to stabilize the economy often depend on the whims of

0:31.0

politicians. There is debate, there's sometimes dead luck, in the

0:35.2

meantime people are hurting. Now last week's healthy jobs numbers along with

0:39.8

other positive economic data indicate we've avoided a recession at least for now but

0:45.5

we know economies move in cycles and there will be another downturn at some point.

0:50.4

So for some economists now is a good moment to consider if there is a better way to combat the next recession,

0:56.7

some kind of way to provide relief without all the scrambling.

1:01.1

Today on the show, we talked to an economist about his proposal for helping households

1:05.3

through economic slumps.

1:07.3

It involves the government automatically sending people cash, potentially400 billion of it.

1:13.6

You're going to need a bigger mailbox.

1:15.4

Yeah, we'll go shopping after the break. This message comes from NPR sponsor SAP Concur.

1:27.0

Stuart McClain, CFO of Brother UK, shares how SAP Concurs Audit and expense tool supports their work across multiple offices.

1:37.0

Across Europe we have a presence in 17 countries which obviously involves 17 different tax regulations, 17 different fiscal authorities,

1:46.0

you know, and this makes life complicated for us.

1:49.0

But actually with SAP concur, we're able to configure the system correctly for each of those countries.

1:55.2

We're able to configure the audit rules correctly for each of those countries.

1:59.1

So actually it gives us a lot of efficiency and good governance as well. So actually for us a solution like SAP concur

2:05.2

makes life so much easier. Otherwise we'd be forever checking back to

...

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