PPP Funds: $800 Billion to the Richest 20%? Outrage Over Loan Program Inequality
A National Bureau of Economic Research (NBER) paper reveals that the initial $510 billion in Paycheck Protection Program (PPP) loans disproportionately benefited the wealthiest 20% of the population, with approximately $370 billion going to this group. While the program successfully preserved millions of job-years, its broad approach lacked targeted distribution, resulting in a highly regressive outcome. Although intended to support paychecks, a significant portion funded business owners and stakeholders. Improvements in targeting in 2021 demonstrated the feasibility of more equitable distribution, highlighting the need for enhanced government infrastructure to effectively direct future aid.
John Q. Hosedrinker