An open letter signed by more than 150 economists in concert with two public policy groups asks the government to provide more cash for individuals in a manner similar to the distribution of $1,200 per person earlier this year.
The letter asks Congress to make payments automatic based on certain economic triggers rather than contingent upon congressional action and presidential approval.
It states, in part: “We urge policymakers to use all the tools at their disposal to avoid further preventable harm to people and the economy, including recurring direct stimulus payments, lasting until the economy recovers. The widespread uncertainty created by the COVID-19 pandemic and recession calls for a multifaceted response that includes automatic, ongoing programs and policies including more direct cash payments to families; extended and enhanced unemployment benefits; substantial aid to state and local governments; stronger SNAP benefits; robust child care funding and more.” SNAP is a federal program designed to ensure low-income people have sufficient quality food.
The economists argue that direct cash payments are important because of the level of suffering among jobless workers and their families. Stimulus payments, the authors write, can instantly help the economy.
“We agree with economists from across the political spectrum that concerns about debt and deficit should not get in the way of taking appropriately strong measures to stem the downturn now,” the letter says. “Regular, lasting direct stimulus payments will boost consumer spending, driving the economic recovery and shortening the recession.”
The authors add, “Continuing recurring payments until there is reliable evidence of an economic recovery — such as low and declining unemployment — will promote certainty for all sectors of the economy and for state and local governments and federal agencies.”
Congress is on recess but will return before some current COVID-19 response programs expire July 31.
The economists’ letter, which calls for action before then, was arranged by the Economic Security Project and The Justice Collaborative.
The list of signers includes economists from the Clinton and Obama administrations and Indivar Dutta-Gupta, co-executive director at Georgetown Center on Poverty and Inequality. A New York Times report on the letter noted the list of signers includes some advisors to presidential candidate Joe Biden.
The Federal Reserve Bank of Atlanta also suggested this week that the economy may need more direct federal infusions of cash due to COVID-19, as a surge in cases could stall the economic recovery.
Apple reportedly closed out 2024 suffering a double-digit drop in iPhone sales in China.
Sales of the company’s flagship product were down 18.2% in China during the last quarter of the year, Bloomberg News reported late Monday (Jan. 20), citing Counterpoint Research data. It was the latest example of Apple’s struggle in China, its biggest market outside the U.S.
According to the report, iPhones — which had been the number one phone in China this time last year — fell to third place, with China’s Huawei taking the number one spot.
“This is the first time since the U.S. ban that Huawei regained the leading position,” Counterpoint analyst Mengmeng Zhang said. “Huawei’s sales increased 15.5% YoY driven by the launch of the mid-end Nova 13 series and high-end Mate 70 series.”
This follows similar Counterpoint research from last week showing that iPhone sales had fallen 5% last year amid stronger competition, and a lack of Apple’s artificial intelligence (AI) features on phones sold in China.
Apple has been slower to roll out its AI offerings compared to its competitors, introducing its Apple Intelligence suite following the debut of the iPhone 16 in September.
The company has not been able to add AI features to iPhone 16s sold in China due to local restrictions. China’s government requires generative AI operators to secure permission before they can roll out a product. That’s left Apple trying to land partnerships with Chinese companies to introduce its AI feature.
Apple is also facing pressure in another major smartphone market, with Indonesia banning the iPhone due to that country’s content restrictions. The company had proposed making a $1 billion investment in local manufacturing, but Indonesia’s government said that wasn’t enough to meet a regulation that requires 40% of all content in devices to be sourced in-country.
As noted here last year, experts argue the company’s embrace of AI technology could transform how people shop, while also pushing back against the idea that Apple is lagging in Big Tech’s AI race.
“Apple may be late to the AI surge compared to Google and Amazon, which have been adding AI to products for years,” The Big Phone Store CEO Steven Athwal said in an interview with PYMNTS. “But Apple has always been about timing and refinement. While others rushed to put out the latest in AI tech, Apple focused on privacy, security and user experience.”