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Saturday, April 18, 2020

Congress to cities: Drop dead

The bosses have won the pandemic.  Already the emergency has occasioned a massive transfer of wealth to the wealthiest tranche of American plutocrats and, yet another, re-writing of every rule of finance for the benefit of bankers and stockholders.  Already we've seen massive unemployment met with only temporary relief drizzled out through a broken benefits delivery system and a one time check that many may never see.  The bosses don't care about your problems.  They just want a more compliant workforce. "The age of coddling is over," is their motto now.

And so it will continue to be. Municipal and state governments everywhere have been sent reeling by the economic interruption.  New Orleans is facing an estimated $150 million budget deficit now. But it is not alone. Every state and every city needs, at least, the same immediate federal injection of funds that have been afforded to the banking system. Otherwise, the basic services and infrastructure you depend on (your schools, your streets, your EMS and fire departments, your freaking water management) will be left to collapse. This is a choice that policymakers can make now.  And look what they are choosing.

A key sticking point remains, however: Money for state and local governments struggling to deal with the economic fallout from the virus’ lockdowns. On Friday night, Democrats offered Mnuchin money for the Paycheck Protection Program, hospitals as well as $150 billion for state and localities. On Friday night, Democrats proposed to Mnuchin providing the $250 billion on the table for the Paycheck Protection Program as well as more money for hospitals, plus $150 billion for state and localities.

But according to two Republicans following the talks, money for state and local governments is a red line for the GOP and would likely trigger opposition that would derail any agreement. Because Congress is on recess until May 4, any member can object to a deal. And conservative senators are likely to tank any agreement that delivers a large increase in funds for state and local governments, Republicans said.
This is what they want.  They want a cowed and compliant workforce suffering under a civic regime dissolved entirely into the hands of private profiteers. The pandemic has been a big win on that front.  Congratulations.

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