IDEAS home Printed from https://ideas.repec.org/a/ntj/journl/v73y2020i3p645-672.html
   My bibliography  Save this article

COVID-19, the CARES Act, and Families’ Financial Security

Author

Listed:
  • Neil Bhutta
  • Jacqueline Blair
  • Lisa Dettling
  • Kevin Moore

Abstract

In response to the severe economic shock induced by the COVID-19 pandemic, Congress passed the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. Using data on savings, income, and expenses from the Survey of Consumer Finances, we show that cash assistance included in the CARES Act allows almost all families to cover their normal, recurring expenses in the event of long-term unemployment. In the absence of government support, nearly half of families who lose their income for six months would not be able to cover their expenses due to low levels of liquid saving and standard unemployment insurance benefits that do not fully replace income.

Suggested Citation

  • Neil Bhutta & Jacqueline Blair & Lisa Dettling & Kevin Moore, 2020. "COVID-19, the CARES Act, and Families’ Financial Security," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 645-672, September.
    • Handle: RePEc:ntj:journl:v:73:y:2020:i:3:p:645-672
    DOI: 10.17310/ntj.2020.3.02
    as

    Download full text from publisher

    File URL: https://doi.org/10.17310/ntj.2020.3.02
    Download Restriction: Access is restricted to subscribers and members of the National Tax Association.
    File URL: https://libkey.io/10.17310/ntj.2020.3.02?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Economic policy > Household support > CARES Act

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:diw:diwwpp:dp1961 is not listed on IDEAS
    2. Bucciol, Alessandro & Papadovasilaki, Dimitra, 2023. "Portfolio decisions and perceived racial discrimination," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 106(C).
    3. Dergiades, Theologos & Milas, Costas & Panagiotidis, Theodore, 2022. "Unemployment claims during COVID-19 and economic support measures in the U.S," Economic Modelling, Elsevier, vol. 113(C).
    4. Johnna Montgomerie, 2023. "COVID Keynesianism: locating inequality in the Anglo-American crisis response," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(1), pages 211-223.
    5. Dreger, Christian, 2023. "The impact of demand and supply shocks on inflation. Evidence for the US and the Euro area," MPRA Paper 116316, University Library of Munich, Germany.
    6. Maksim Belitski & Christina Guenther & Alexander S. Kritikos & Roy Thurik, 2022. "Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses," Small Business Economics, Springer, vol. 58(2), pages 593-609, February.
    7. repec:ers:journl:v:xxiv:y:2021:i:4:p:233-245 is not listed on IDEAS
    8. Iwona Bak & Beata Szczecinska, 2021. "The Financial Situation of Enterprises in the Clothing and Footwear Sector in the Face of the COVID-19 Pandemic," European Research Studies Journal, European Research Studies Journal, vol. 0(4 - Part ), pages 233-245.
    9. Marta Lachowska & Wayne Vroman & Stephen A. Woodbury, 2020. "Experience Rating and the Dynamics of Financing Unemployment Insurance," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 673-698, September.
    10. Adam P. Balcerzak & Ilona Pietryka (ed.), 2021. "Contemporary Issues in Economy. Proceedings of the International Conference on Applied Economics: Economics," Books, Institute of Economic Research, edition 1, volume 11, number 25.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:73:y:2020:i:3:p:645-672. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: The University of Chicago Press (email available below). General contact details of provider: https://www.ntanet.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.