With economic signals and coronavirus infection rates pointing to a “double dip” recession as more states implement public health restrictions due to virus outbreaks, President-elect Joe Biden is pushing Congressional leadership to strike a deal on a relief package, according to the New York Times (via Yahoo News to avoid paywall).
Senate Majority Leader Mitch McConnell and the GOP have blocked efforts to negotiate a relief bill, saying that they will not budge off an inadequate $500 billion proposal. The Democrats, led by House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer, have presented a $2.4 trillion package.
Republicans do not support the Democratic package because it provides funds for cities and states that are facing decreased tax revenues during the pandemic. Trump, McConnell and Republicans have claimed falsely that the money will only go to “bail out Democrat [sic]-led cities.”
Pelosi and Schumer wrote in a letter to McConnell, “The COVID-19 pandemic and economic recession will not end without our help. It is essential that this bill have sufficient funding and delivers meaningful relief to the many Americans who are suffering.”
Trump has largely ignored the pandemic and the economic and health impacts of the coronavirus, instead pushing states to return to normal operations even as the number of infected person hits new highs in the United States.
Congressional Republicans are expected to suddenly take a new interest in federal deficits and debt as of January 22nd, after four years of Trump’s economic policy which saw a $8 trillion increase in the federal debt and a federal annual deficit that skyrocketed to $3.1 trillion.
The newest wave of the coronavirus–which is expected to spike after the holidays–will likely result in companies shedding three million jobs early in 2021, increase unemployment to the mid-6%, according to information from economics analyst Mark Zandi at Moody’s.