Passing the 3.4 trillion HEROES Act in the House May 12, 80-year-old House Speaker Nancy Pelosi hopes to get another round to economic stimulus to working families during the ongoing coronavirus AKA SARS CoV-2 or Covid-19 crisis, driving U.S. unemployment up from 3.5% to 15% nationwide. While Republicans have done little to take up the new House stimulus bill, 77-year-old President Donald Trump showed more interest in working on compromise legislation. “I support it, but it has to be properly,” Trump said, commenting about provisions to get more cash into the hands of American consumers. About 70% of U.S. Gross Domestic Product [GDP] comes from consumers spending, something that been slowed to a negative 6.5% GDP for fiscal 2020. Federal Reserve Board’s 68-year-old Chairman Jerome Powell asked the
White House and Congress to come up with more stimulus.
Faced with uphill reelection battle, Trump’s looking for anything to give himself a boost, when the coronvirus crisis and nationwide race protests from the May 25 George Floyd murder threaten to derail his campaign. “I support actually larger numbers than the Democrats, but it’s got to be done properly. We had something where it gave you a disincentive to work the last time. Trump referred to a provision in the March 25 CARES Act where unemployment benefits running through July 31 pays workers $600 a week more than normal unemployment compensation. Many workers have not returned to work because they make more money on unemployment than if they went back to work. Treasury Secretary 57-year-old Steve Mnuchin said the White House would “seriously look a whether we want to do more direct money to simulate the economy,” meaning less money for unemployment.
Pelosi in the HEROES Act wants to give individuals another $1,200 and families up to $6,000 to go out and spend into the consumer economy. Borrowing another $3.4 trillion from the Federal Reserve Board would add to the growing national debt and federal budget deficits. Trump wants more stimulus but he doesn’t want to discourage workers from going back to work. Trump wants to negotiate with Pelosi but only if it doesn’t advance the Green New Deal, Black Lives Matter or other House Democrats leftist proposals. More cash to small businesses, individuals and families would find common ground with Democrat and Republicans, provided the coronavirus continues to ravage the U.S. economy. With recent shutdowns before July 4, it’s a big blow to the economy, because Wall Street’s expectations that the virus would be under control are no longer realistic.
Given the stubborn nature to the SARS CoV-2 pandemic, public health officials led by 80-year-old National Institutes of Health infections disease chief Dr. Anthony Fauci has been warning the White House and others about a second wave. With many states opening up for business, it’s produced a second wave now seen in Florida, Oklahoma, Texas, Arizona, California and other mountain states, prompting governors to order new shutdowns. California’s 48-year-old Gov. Gavin Newsom, one of the most cautious governors, just ordered all restaurants and bars closed in 18 counties, not to mention beach closures around the state. Even Trump has begun to relax about face masks, according to Fauci, an essential part of any reopening. Trump hoped that the virus would become extinct over the summer. Since things are getting worse in certain key states, Trump’s rethinking his view on face masks.
Biden’s been poking fun at Trump from the basement of his home in Delaware where he broadcasts his interviews and town hall meetings. Trump’s been forced to pivot away from his opposition to masks, partly because his 45-year-old Surgeon General now thinks that masks are an important part of battling coronavirus. Before Adams and the Centers for Disease Control [CDC] didn’t think masks did much to stop the spread of the virus. “I‘m all for masks,” Trump told 52-year-old Fox News Business Maria Bartiromo. Democrats have had fun poking Trump with the mask issue. “Actually, I had a mask on. I sort of like the way it looked, OK? I thought it was OK,” Trump said. Trump wants get back to campaign rallies, a place where he can tell his story, not listen to all the fake news in newspapers and on TV. Unlike Trump, Biden’s content to stay cloistered in his basement, in gaffe-free place.
Sometime in July, the White House and Congress will negotiate another round of economic stimulus designed to help spur a sputtering U.S. economy. Wall Street’s attempt to keep the Covid-19 rally has hit a brick wall with the market moving sideways, one day up, another day down. Trump thinks Biden’s plan to raise corporate tax rates from 21% to 28% would undermine any attempt at economic recovery, especially with Covid-19 lurking around. Getting more cash into small businesses, individuals and families would help spur more consumer spending, about 70% of U.S. GDP. Whether Trump wears a mask or not, consumers still need cash to spend, as long as the coronavirus pandemic permits more businesses to open up. Fed Chairman Powell 100% backs another round of stimulus, hoping the White House and Congress can get on the same page for the good of the economy.
