Towards the end of Wednesday, Senate leaders announced an agreement on the core of a new stimulus bill – a sign that the long-running feud between rival powers is coming to an end.
We welcome the news. The country’s economy needs a desperate second phase of financial transition, including further checking of individuals and families. The counter intuition can come from an editorial page that has championed austerity and a balanced budget, a struggle that needs to succeed.
America needs to pump more money into an economy that is struggling with the virus, not with any self-imposed weakness or uninterrupted business behavior. With the exception of COVID-19, a complete economic recovery with record low unemployment will probably continue unabated.
The deal, between Republican leaders and the White House on Wednesday, includes billions for schools and Covid-19 testing. More details were expected to come next Thursday. Officials say the Senate plan could come as multiple bills. We hope it provides a wide and far-reaching, support in key industries and one more check for individuals.
Despite the recent good news, much of the nation’s struggle continues. Utah’s unemployment rate could return to 5.1%, but a few industries – particularly tourism-related businesses and airlines – face potential catastrophic decisions. If the airline, in particular, goes under it, the rest of the economy will suffer and the movement of goods and people will be disrupted.
And the disaster will affect Utah, a hub for Delta Airlines and the soon-to-be-completed new international airport.
Unemployment claims may seem stable for the first time weekly, but 1.3 million of these were filed last week, and this is still a sufficient number that translates into many distressed families.
Senate leaders have previously said they are considering new office checks for people earning 40,000 a year. This is not a bad idea.
Earlier this week, Natalie Goknur, director of the Chem C. Gardner Policy Institute at the University of Utah, showed us a chart compiling the top 10 government spending and tax multipliers found in the Hero Act, which the bill passed in May to the Democratic-controlled House.
Helping low-income people through a variety of programs and helping employers with businesses and retaining their workers meant the list was high with all Americans having low scores on direct checks,
This is because low-income people need money to survive and it tends to spend faster, so it runs through the economy, financing jobs and small businesses, he said. The richer a person is, the more inclined he is to save extra money.
The way the Senate decided this week will require hard work to resolve disagreements with the House. But Wednesday’s deal is an important first step.
Republicans and Democrats, who rallied quickly for stimulus money in the first round, should waste a little time now.
That said, once the epidemic is over, Congress needs to address the issue of controlling the country’s excess money spending. Relief aid, if needed, has added trillions to the national debt and sent annual budget deficits to record highs.
This can have catastrophic consequences in the long run. However, not passing the second stimulus bill could have catastrophic consequences in a very short time.