Could cash payments ease recessions?

This podcast episode proposes a new type of automatic stabilizer: monthly cash payments during recessions, targeted to those in need. These payments would be triggered by the Sahm Rule, an indicator that detects recessions based on unemployment data, and would be adjusted by income. They estimate that the program would amount to a maximum of $430 billion a year and provide a 3-4% boost in income for the average family, with greater benefits for Black and Hispanic families. The speakers argue that such programs are anti-racist because they avoid the discretion of deciding who is deserving and undeserving at the point of payment delivery.