Rooted in the conservative principles of limited government and private property rights, the Rehire America Workplace Recovery Act (RAWRA) is a proposal that would provide relief to businesses for the cash losses they have sustained due to the COVID-19 business shutdowns and the subsequent government-induced economic crisis. It seeks to provide this relief via cash injections to cover businesses operating cash losses with the goal of bringing stability to their operations and cash positions. These cash injections include funding for the retention of current employees and the rehiring of former ones. The cash injections, including their contribution to operating stability, should create the confidence needed for businesses to retain and rehire employees. Fulfilling its conservative promise, the proposed legislation is 100% temporary as it self-terminates on or before February 28, 2021.
The results of an economic analysis of the legislation are presented in this report. Table 1 presents a summary of the study’s findings. They show that the proposal’s benefits far outweigh its costs. Impressive job numbers in May and June 2020 can be tailwinds for a quicker recovery of the U.S. economy than analysts are predicting. RAWRA can aid and boost this recovery over the next year, putting more Americans back to work than would occur without the proposal.
Table 1
Summary of Findings with Weighted-Average Recovery Depending on Duration of RAWRA
