The paycheck program that missed the paychecks
$800 billion to “protect paychecks.” Most of it never reached one.
- Who acted
- Trump signed it. Congress passed it with overwhelming bipartisan support.
- Who gained
- Owners, shareholders, and creditors received 66% to 77% of the program’s benefits. About three-quarters landed in the richest fifth.
- What working people pay
- Only 23 to 34 cents of each dollar reached worker paychecks, according to the definitive study.
- The connection
- Congress rushed out $800 billion with few strings, then forgave nearly all of the loans.
Receipt: NBER study by David Autor and Federal Reserve economists
During COVID, the government handed businesses $800 billion in loans and then forgave nearly all of them. The pitch: keep workers on payroll.
The definitive study — MIT's David Autor with Federal Reserve economists — found 66% to 77% of the money never reached a worker's paycheck. It went to owners, shareholders, and creditors, and three-quarters of the benefit landed in the richest fifth.
Trump signed it. Both parties voted for it, in a hurry, with almost no strings. Per dollar, it was one of the most regressive programs the government has ever run.
Trump signed it with bipartisan support: up to three-quarters of the $800 billion Paycheck Protection Program never touched a paycheck.
