Stimulus

Early rounds of virus aid passed by overwhelming margins as the economy went into lockdown in March. After that, Trump and many of his GOP allies focused on loosening social and economic restrictions as the key to recovery instead of more taxpayer-funded help.

Still, the decision to halt

negotiations now could be politically perilous. While the stockmarket has clawed much of its way back after cratering in the early weeks of the crisis, unemployment stands at 7.9%, and the nearly 10 million jobs that remain lost since the start of the pandemic exceed the number that the nation shed during the entire 2008-09 Great Recession.

The economy has recovered more quickly than most economists had expected,

largely because of the aid Congress approved in a $2 trillion package in March. The $1,200 stimulus checks, supplemental $600 unemployment benefits eachweek, and aid to small businesses boosted household incomes and enabled many low-income Americans to pay bills and rent and maintain their overall spending, according to data fromOpportunity Insights.

But the recovery has slowed and certain sectors

such as restaurants, hotels, theaters and airlines remain in bad shape, shedding jobs and risking permanent realignment. Without more stimulus, economists expect growth will slow significantly in the final three months of the year.

“You’re going to see quite a significant drag on growth,” said Gregory Daco, chief U.S. economist at Oxford Economics, a consulting firm. It “would really risk a double-dip recession.”