Either [States and Municipalities] Raise Taxes on Wealthy to Fund Recovery or Expect Years of ‘Grinding Recession,’ Argues Nobel Prize-Winning Economist — Joseph Stiglitz and Kitty Richards

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Mike Norman
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In an op-ed published on Thursday in the New York Times, Nobel Prize-winning economist Joseph Stiglitz and his Roosevelt Institute colleague Kitty Richards argue that rather than wait for Congress to provide financial aid to deal with the economic consequences of the coronavirus pandemic, state and local governments should increase taxes on "their wealthiest residents" to "bolster their local economies" and meet pressing needs or else Americans will be forced to suffer an "unacceptable alternative" characterized by socially-damaging austerity and a long-lasting recession. 
Richards and Stiglitz make the case that "the economic impact of the pandemic is daunting, and it would be better for the federal government to step in." According to the pair of economists, the federal government—unencumbered by balanced budget rules hampering many states—"could solve the problem tomorrow by providing fiscal relief to states and localities, like the $1 trillion provided by the HEROES Act that passed the House in May" before languishing on Senate Majority Leader Mitch McConnell's (R-Ky.) desk. 
Nevertheless, people across the U.S. are "living through a catastrophe" and need assistance right now, the economists write. They "cannot afford for their state and local leaders to abdicate responsibility." ...