Congress

McConnell Says No To Stimulus

SK Ashby
Written by SK Ashby

House Democrats recently unveiled a $2.2 trillion stimulus proposal that includes a direct stimulus payments and a revival of the pandemic unemployment program, among other things, and Treasury Secretary Steve Mnuchin and Speaker Nancy Pelosi have reportedly moved a little closer to an agreement, but that doesn't mean Senate Republicans will ever come on board.

Asked about the Democratic proposal and progress between the congressional Democratic leaders and the White House, McConnell told reporters this afternoon that they're still "very far apart" from the "outlandish" proposal.

WASHINGTON, Sept 30 (Reuters) - U.S. Senate Majority Leader Mitch McConnell said Wednesday that Republicans and Democrats are still very far apart on how much to spend on another coronavirus relief package.

"Secretary Mnuchin and the Speaker are continuing to speak, but we’re very very far apart," McConnell told reporters, referring to ongoing talks about coronavirus aid between Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi. McConnell said Pelosi's latest proposal of $2.2 trillion was "outlandish".

Wall Street began to drop immediately after McConnell said this, but that's their own fault. The market had increased in recent days based on little more than the notion that a stimulus package was on the verge of passing. Traders clearly don't pay enough attention to how hopeless Republicans are.

In closely related news, Disney is laying off 28,000 employees. Major airlines are laying off 50,000. Marathon, the largest U.S. oil refiner, is beginning "widespread job cuts." Shell is cutting 9,000 jobs. And those are just the biggest headlines; cuts are happening across the economy.

I don't know if we're headed for a double-dip recession, but we can say with certainty that Republican refusal to pass any meaningful stimulus is making it more likely.

The fact is most American just don't have extra money to spend to keep it all going and even if those who do are still hampered by a pandemic we haven't controlled.

No one is really talking about it, but Republicans are deathly afraid that recent events are going to lead to more American support for universal basic income or "socialism." I think we can all see it has an enormous positive influence on economic activity and studies show it doesn't stop people from working. It may even improve employment.