The stimulus negotiations are beginning to remind me of running on a treadmill — lots of effort, no forward motion.
Driving the news: Senate Majority Leader Mitch McConnell (R-Ky.) said Thursday that he would not put a potential $1.8 trillion+ deal struck by Democrats and the Trump administration on the Senate floor. “My members think half a trillion dollars, highly targeted is the best way to go,” he said.
Why it matters: The economy and American workers need help. Democrats say so. President Trump says so. Fed chair Jay Powell says so, adding that there’s a low risk of “overdoing it.” At some point, such inaction will catch up to investors.
- This comes against a backdrop of a still-raging pandemic. Yesterday, for example, showed increased COVID-19 caseloads in all 50 states, while over 100 million Americans remain out of the labor force.
State of play: House Speaker Pelosi and Treasury Secretary Mnuchin talked yesterday and will talk again today.
- One possible breakthrough is on the Democrats’ ask for a national testing plan, which Mnuchin this morning said on CNBC that the White House will now support.
- No word yet on if the WH will relent on another sticking point, related to expansions of the child tax credit and earned income tax credit. Or if Pelosi will give the WH a win on virus-related liability protections for businesses and schools.
What to know: President Trump said on Fox Business this morning that he would “absolutely” go higher than a $1.8 trillion proposal, and that he has directed Mnuchin to do so. But there isn’t actually a WH proposal to negotiate against, at least not in document form.
The biggest hurdle is Senate Republicans, who have been left out of negotiations and who seem uninterested in comprehensive stimulus. One explanation is that McConnell is laser-focused on SCOTUS, but it’s unclear why he won’t walk and chew stimulus at the same time — particularly given how much Trump wants a deal before the election.
- McConnell is, however, at least baking some stimulus crumbs by proposing a series of doomed “skinny bills,” including an upcoming one to create a second round of PPP loans.
- Democrats haven’t given terribly compelling reasons for why they keep rejecting these piecemeal proposals out of hand, particularly in light of their recent willingness to pass a standalone US Postal Service bailout bill (which, conversely, McConnell ignored).
Where it stands: “I’m proposing what we think is appropriate,” said McConnell when asked about Trump’s “Go big or go home!!!” directive on stimulus. McConnell issued a statement on Tuesday saying that the Senate’s “first order of business” when it returns on Oct. 19 will be to vote on a $500 billion targeted bill — a quarter of what both the WH and Democrats are proposing.
The bottom line: Most of the CARES Act benefits expired months ago, and we’re now less than three weeks away from an election in which most of those who’ve failed to adequately follow-up are on the ballot.
The bottom line is the Republican party is serving the wealthy. They always have. The wealthy business owners want a desperate starving population that will take any pennies the wealthy allow them to do any unsafe job with no complaint. look at other countries with huge slums and small wealthy politically connected classes.
The wealthy believe, really do insists, that the governments serve their interests. It is not to this extent in other developed countries because they work for and protect their population, it is only in third and fourth world countries. In the US the wealthy have convinced a large portion of elected officials through bribes that the government should only serve to make the wealthy more money, called extreme capitalism, but should never work to assist or aid the working population or poor. Why do they have that idea. Class structure and an understanding desperate people can not complain or fight back.
So that is why the Republicans are not willing to step up and extend the same relief and financial assistance to the people they willingly gave to the large business that donate to them. While they gave trillions to business with no requirements to keep workers, which kept the stock market for the wealthy going great, they wont give any of our taxpayer moneys to keep the workers and lower incomes from losing everything, being homeless, having to be sick with no assistance, and starving.
This should make it very clear what is happening in the US. There should be no doubt. The extreme wealthy, large multinational corporations have bought all of the Republican party and a portion of the Democratic party to turn the US in to an extreme capitalist dystopia where the wealthy upper class suck every cent of the public money to themselves and live as rulers, while the lower class serves and dies, struggling to live in short hard lives. Sad hugs