After two days of negotiations, no agreement has been reached among our political leaders on the size of the third stimulus or what should go in it.
Do I hear the squeals of pigs and smell pork? Hopefully not. We don’t honestly know, but if past is prologue, there is a lot of pork in a time of crisis. It is important to help the target population, but it could get to a point at which the cure is worse than the disease.
The stimulus could reach $2 trillion, 10% of our GDP and some Keynsians scream it’s not enough.
The purpose of the package is to ward off some effects of the virus, which is to some degree, overblown.
As negotiations progress, the size and scope of the package appeared to steadily increase. National Economic Council Director Larry Kudlow told reporters Saturday morning that it would likely exceed 10 percent of GDP —roughly $2 trillion. And he said small businesses would likely see a payroll tax holiday.
Senate Majority Leader Mitch McConnell (R-Ky.) is pushing hard for a deal, Politico reports.
GOP lawmakers and White House officials warn they will start drafting their own bill if no accord is reached with Democrats by Saturday afternoon. McConnell wants the rescue package by Monday.
We are facing up to 40% unemployment, some are reporting as a worse case scenario.
Among the outstanding issues are assistance for hospitals, a “State Stabilization Fund,” which would assist state governments with looming revenue shortfalls during the pandemic, and unemployment insurance.
Democrats want workers to see their full wages compensated. Republicans argue that the state agencies do not have the capacity to meet this demand.
Where Democrats think the money is coming for that is hard to say. Too many of our leaders want a complete redistribution of wealth and ignore our debt.
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