Stalled Stimulus Talks and Presidential Transition

L . Thomas Block

Stimulus

President Trump has walked away from Congressional stimulus talks leaving the negotiations to Senate Majority Leader Mitch McConnell and Speaker of the House Nancy Pelosi. The two sides come to the table with sharply different views, but a great deal at stake if they fail to pass any bill.

The Speaker is still talking about the $3T “Heroes Act” as the base bill, while the Senate Republicans are putting forward their $500B proposal. Without any agreement, millions of unemployed workers will lose unemployment benefits that were extended from 26 to 39 weeks under the CARES Act passed earlier this year. The CARES Act benefits expire on December 31.

Speaker Pelosi walked away from the Trump Administration’s $1.8T offer before the election; but now it seems that size of a deal is unlikely. While there is still a possibility that Congress could fall under Democratic control if Democrats win both special elections in Georgia on January 5, it seems as though there is need for some bill now. Even if there is a Democratic sweep in Georgia, Biden won’t become President until January 20 leaving months of hardship for unemployed Americans.

Election

President Trump’s viewpoint was summed up today in an interview he gave today to the right leaning Washington Examiner when he cautioned, “never bet against me.” Trade adviser Peter Navarro told Fox Business that “the White House is working under the assumption that there will be a second Trump term.”

But developments out in the field are moving against the President. In Arizona, final votes have been counted and the state has been declared for Biden. The Arizona Republican Party withdrew its suit alleging voter machine error due to the use of sharpies when no errors found. The President and some of his supporters continue to make charges of widespread corruption but haven’t submitted evidence to courts to back up the claims.

Perhaps the President’s dilemma was best highlighted by a Trump Tweet today, “…wonderful job the Trump Administration did in making 2020 the most secure election ever. Actually, this is true, except for what the Democrats did. Rigged Election!”

Disclosures (show)