The Covid-19 pandemic caused huge economic disruption for millions of Americans. Unemployment rose sharply. Many businesses – especially small ones – struggled to stay open. Yet consumer credit scores actually increased during the course of the pandemic. What explains this surprising result? What role did reduced household consumption play? How did government programs impact credit scores? And what will happen as the pandemic eases – and, with it, government relief measures?
This episode’s guest is Dr. Joyce Beebe, Fellow in Public Finance at the Baker Institute and an expert on taxation. She has recently published an issue brief titled “The Curious Case of High Consumer Credit Scores.” It is available on the Baker Institute website.
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