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Consensus on Need of Assistance; Disagreement on How to Address Needs – CBS New York

(CBS Detroit) — Both Democrats and Republicans agree on the need for a second round of economic stimulus. What they disagree with is what the stimulus should take and how much it should cost. Little progress has been made since the election. It remains to be seen what can be done during the lame duck session leading up to the inauguration of Joe Biden in the presidential election.

Speaker of the House Nancy Pelosi said on Friday: This is a red warning and all hands are on the deck. This is the most serious emergency, as I discussed with Schumer leader yesterday … “

President Trump recently tweeted again his support for the big stimulus.

The White House also receded from the $ 1.9 trillion proposal, but supported it for the election.

Large-scale stimulus measures could include a series similar to the revised $ 2.2 trillion HEROES law that passed the House of Representatives in early October. These include $ 1,200 incentives, additional federal unemployment benefits, and assistance to cities and states. Treasury Secretary Steven Mnuchin, who was negotiating on behalf of the Trump administration at the time, was backing aid to cities and states when the negotiations broke down.

As proposed, the Biden program includes an additional $ 200 per month for recipients of social security and student loan exemptions. Other measures do not include emergency sick leave, additional money for small businesses, COVID testing, treatment, or personal spending for vaccines.

>> Read: Stimulation Package Update: What does the Biden administration mean for more help?

The Biden administration will see the revised HEROES law as a starting point for further negotiations. “I think the people of Biden might start with the Pelosi bill,” said Harry Holzer, a professor of public policy at Georgetown University and a former chief economist at the US Department of Labor. “Maybe they want to go near a bipartisan caucuse in the House of Representatives. [which] Proposed a $ 1.5 trillion bill. “

Senate leader Mitch McConnell also agrees that his scope is much more limited, but he needs to do more.by Politico, Pelosi and Schumer said, “… I’m seeing something dramatically bigger. It’s not the place we think we’re going.” “But I think we need another package. Hopefully we can overcome the four- to five-month deadlock and take it seriously.”

Two causes of the impasse are the amount of additional federal unemployment allowances and aid to cities and states. Republicans see the former (at least the Democratic demand of $ 600 a week) as overly generous and discouraging for the unemployed to return to work. Evidence does not support that claim.

They see the latter as a “blue state bailout,” but budget shortages have hit states and cities across the political spectrum. State and local governments rely on income from sales and property taxes. However, all states except Vermont need to balance their budgets. “Sales tax revenue is declining [and] Property tax revenues will probably also be affected, “says Jeva Nersisian, an associate professor of economics at Franklin & Marshall University. “That’s why their income is declining. They fire people and start reducing services … these kinds of services provided by education, police, firefighters, states and local governments.”

>> Read: Economists say when drafting an aid package that “stimulation checks are not the most important”

The Senate’s last unsuccessful stimulus attempt amounted to $ 500 billion and did not include stimulus checks. However, Senate Republicans see recent positive economic news in support of their position on more limited packages. Employers added 638,000 jobs in October, down from 672,000 in September. This reduced the national unemployment rate to 6.9%, despite slowing growth. The number of long-term unemployed has increased by 1.2 million. Of the 11 million people currently unemployed, one-third are unemployed for at least 27 weeks.

There has been no exciting discussion since the election, but McConnell will probably play a more active role. New York Times.. “There is no discussion between McConnell and Pelosi yet, but McConnell no longer intends to rely on Mnuchin to do business,” said Charles E. Grasley, Senator of Iowa, chair of the Senate Finance Committee. I will. “I think he’s taking over and trying to do something.”

Meanwhile, the COVID-19 numbers are clearly moving in the wrong direction. On Friday, 184,000 new cases were reported in the United States, setting a record for the fourth consecutive day. It seems that the count of 200,000 people per day is imminent. Hospitals in many parts of the country run out of beds and medical staff to treat patients. Some states rely on field hospitals.

The United States set a record for COVID-19 for the fourth consecutive day, with more than 184,000 cases reported on Friday and more than 68,000 people hospitalized for the virus. An average of more than 1,100 Americans died from the virus per day last week as officials across the country announced new measures in response to the surge. The upward trend is expected to continue.

>> Read: Stimulation Package Update: What will happen to the economy without a second stimulus?

Despite the runaway pandemic, there was a lot of positive news on the vaccine side. Last week, pharmaceutical company Pfizer claimed that the coronavirus vaccine was 90% effective in preventing COVID-19 in human clinical trials. Since then, Moderna’s coronavirus vaccine has shown similar results in trials. Urgent federal approval may come within a few weeks. However, the logistical nightmare of distributing hundreds of millions of vaccines can last much longer.

Meanwhile, the pandemic and the resulting slowdown can be exacerbated. Another round of appropriate economic stimulus is even more important.

Harry Holzer, a professor of public policy at Georgetown University and a former chief economist at the US Department of Labor, said: “It will weaken recovery. This will make people reluctant to shop, eat at restaurants, etc. The stimulus bill passed by Congress in March and signed by the president was poor with dismissed workers. I think it did a very good job of helping them and stimulating recovery. Without a second stimulus package, more people would suffer and the recovery would weaken. “



Consensus on Need of Assistance; Disagreement on How to Address Needs – CBS New York

Source link Consensus on Need of Assistance; Disagreement on How to Address Needs – CBS New York

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