A wide range of economists are complaining that Congress would leave the city without first completing work on a new coronavirus relief package, which they say is crucial for the country’s recovery and for millions depending on government assistance.
More than 28 million Americans on some form of unemployment insurance lost a crucial source of income after a $ 600 weekly increase in benefits last month.
These households now have much less money to cover basic expenses, including rent and home payments, which they can no longer lose after the expiration of federal bans on foreclosures and foreclosures.
Although it may take weeks to see the effects of the decline in support, above all, economists are sounding the alarm about the potential toll for unemployed Americans and those who depend on them.
Democrats who are trying to increase pressure on Republicans to give in have made similar arguments.
“We can not wait until September 30,” the speaker said Nancy PelosiNancy PelosiSusan Collins Asks Postmaster General to Address Delays in “Critically Necessary Email” Trump Says He Would Sign Accounting Funding USPS But Will Not Seek Changes to Help Post Vote on Money: Senate Leaves Until September Without Coronavirus Agreement | This week’s unemployment claims fall below 1 million for the first time since March | Trump says no post office funding means Democrats cannot have universal postal voting “MORE (D-Caliph.) Said this week in talks about a new coronavirus drug package, “because humans will die.”
Legislators, however, feel some pressure to move from their positions.
Democrats have offered to lower the price tag on their legislation from more than $ 3 trillion to the $ 2 trillion block, but the White House has refused to go above $ 1 trillion.
President TrumpDonald John TrumpUSPS warns Pennsylvania post-in ballots may not be delivered in time to count Michael Cohen book accuses Trump of corruption, fraud Trump requests post-in vote for Florida Congress primary MORE stands behind the prospective Democratic nominee Joe BidenJoe BidenHarris is hosting a virtual Hollywood campaign event chaired by Reese Witherspoon, Mindy Kaling Trump plans to accept Republican nomination from the White House lawn. The US takes four ships loaded with Iranian fuel MORE in national and swinging state votes, and Republicans risk losing the Senate majority. With such a background, Democrats feel too little pressure to go down.
The White House does not seem to feel the heat either. Markets are high and unemployment fell to 10.2 percent in July. Trump is taking executive action to expand some of the stimulus, and he and his allies have used their mobile pulpits to put the blame on Democrats.
If the decay of the support affects, the first hard evidence may come in the August job report. But it will not be released until September 4. Consumer expenditure and income data for August will not be released until 1 October.
Foreclosures and drafts can also take months to process, but missed rent payments have risen steadily since the pandemic began, according to data from insurance company LeaseLock.
These data indicate future problems, say economists who claim that it is a mistake for the government to take a break.
“People have a disagreement about a likely recovery. I do not share the optimism about a rapid recovery that some conservative politicians seem to have, says Glenn Hubbard, former chairman of the White House Council of Economic Advisers under George W. Bush, during a Friday panel.
Hubbard added that he was “mystified” that lawmakers could not strike a deal given the threats facing the economy.
While markets are high, this is partly because they priced in a new aid package, assuming that Congress would pass.
Instead, the Senate left Washington, DC, on Thursday. None of the chambers will return until after Labor Day.
Alix Gould-Werth, head of the family’s economic security policy at the Washington Center for Equitable Growth, a progressive think tank, said the danger is that when people with less money cut spending, the unemployment pandemic will spread.
“Unemployment, like the virus, is contagious,” she said.
The deep partisan distribution over unemployment benefits has made an overall settlement. While Democrats have called for an extension of the $ 600-a-week stipulation with reductions in unemployment, Republicans have ruled out anything that could enable unemployed workers to earn more than they did in their previous jobs.
The CARES Act’s rise to unemployment benefits raised weekly unemployment insurance above the average weekly wage in 38 states, but several studies show that the dynamics have not deterred the unemployed from applying for jobs.
“It is important that this does not become a permanent feature of the unemployment insurance system,” said Michael Strain, director of economic policy studies at the prestigious American Enterprise Institute.
“But there are many numbers between zero and 600 that we can do in the short term.”
Disputes over further support to state and local authorities can also weigh heavily on the future of public workers. The sharp decline in tax revenues and the rising cost of the pandemic could force state and local governments to reduce key services and workers who run them to keep their budgets balanced. State and local authorities have already released 1.5 million workers since the pandemic began, according to the Ministry of Labor, and tolls are likely to be steeper without further assistance.
Democrats have proposed giving hundreds of millions of dollars to state and local governments, an unpopular opportunity among Republicans who see it as a lifeline for irresponsible local officials. It seems to be a special sticking point for Trump, who has repeatedly opposed it.
“Many state and local governments are mismanaged and they really have a right to be worried about the federal government triggering mismanaged states and local governments,” Strain said.
“But even the best-managed states are suffering from revenue losses this year and next,” he added.