The Trump Administration has admitted the amount of the federal subsidy President Trump promised for unemployed Americans at his country club when he signed a memo in front of club members will be less than he said, the Washington Post reports.
Trump promised that the additional aid would be $400 per week, but he put 25% of that payment would be the responsibility of state governments, an unfunded mandate that state governments cannot afford given the current economic downturn due to an ineffective response to the coronavirus outbreak.
The signing ceremony at the Trump National Golf Course Bedminster, in front of club members who have paid a $350,000 initiation fee to join, will actually result in just a $300 per week federal supplement.
The inability of the Administration to fulfill the stimulus is weighing on the decisions of investors, who initially greeted Trump’s announcement by pumping money into markets. Markets finished down today as investors saw cracks develop in Trump’s promises and insufficient aid given to those impacted.
“The White House’s credibility is on the line here in terms of their ability to execute the stimulus they announced over the weekend. And the stock market is telling you here that whatever they’ve announced is not enough — more money is needed to keep the economy recovering, ” said Chris Rupkey, chief financial economist at MUFG Union Bank, told the Post.