Former Federal Reserve Chairman Ben Bernanke had
an op-ed published in the New York Times yesterday. He says he wants us to run the dang money printer.
States and localities are in desperate
need of additional federal intervention before the bulk of the CARES Act
funding expires this summer. Budget gaps like the one in New Jersey
cannot be closed by austerity alone. Multiply New Jersey’s problems to
reflect the experiences of 50 state governments and thousands of local
governments and the result, without more help from Congress, could be a
significantly worse and protracted recession.
The
CARES Act allocated $150 billion to state and local governments. This
new aid package must be significantly larger and provide not only
assistance for state and local governments but also continued support
for the unemployed, investments in public health and aid as needed to
stabilize aggregate demand and restore full employment.
As it stands right now, unfortunately, there isn't much to suggest that we're actually going to see the kind of action Bernanke is calling for. If anything the Trump administration is leaning toward
more austerity. Consider
the sabotage going on at the Post Office, for example.
The Trump administration has consolidated control over the Postal
Service, traditionally an apolitical institution, during the pandemic by
making a financial lifeline for the nation’s mail service contingent
upon the White House political agenda. President Trump in April called
the agency “a joke” and demanded it quadruple package rates before he’d authorize any emergency aid or loans.
The Postal Service’s future needs to be as a low-cost package carrier,
industry analysts contend, as parcels make up a growing portion of the
agency’s volume and profits, and paper mail volumes continue to decline
as coupons and bills increasingly move online. Postal leaders project
the agency could run out of money between March and October 2021.
“If this
is true, it would be a real concern to customers if service were slowed,
especially in light of the fact that the Postal Service may get more
rate authority, meaning higher rates, later this year or early next
year,” said Art Sackler, manager of the Coalition for a 21st Century
Postal Service, an industry group whose members include Amazon, eBay,
Hallmark and other commercial mailers.
“This
is framing the U.S. Postal Service, a 245-year-old government agency,
and comparing it to its competitors that could conceivably go bankrupt,”
said Philip Rubio, a professor of history at North Carolina A&T
State University and a former postal worker. “Comparing it to U.S. Steel
says exactly that ‘We are a business, not service.’ That’s troubling.”
There are no such thing as public services in the hellworld we've built. Everything that isn't an all-out grift, just isn't viable. We've already seen the hostility with which conservatives are attacking public education. This week's threatening demands that schools reopen under dangerous circumstances is only the latest round of that particular gaslighting operation. Yesterday, Senator Kennedy responded to the pleas for the safety of teachers and students from education professionals by inviting them to "
kiss my ass." Meanwhile,
Stephanie Grace picked up on another startling comment from the Vice President during his visit yesterday.
And between congratulating the state for having flattened the curve
(before it unflattened) and offering the obligatory paean to LSU
football (Coach O was in the house), Pence offered this genuinely shocking statement: “We don’t want CDC guidance to be a reason why people don’t reopen their schools.”
Even
if the Centers for Disease Control’s guidance suggests they can’t be
reopened safely just yet in some places, and under some circumstances?
Really, Mr. VP?
Yes,
really, according to the administration’s push to get localities to
fall in line with President Donald Trump’s insistence that all is
basically well, despite an alarming increase in coronavirus cases in
Louisiana and many other states. Pence, Education Secretary Betsy DeVos
and others said that of course schools would have to be opened safely,
but avoided getting into the specifics.
Those
specifics, of course, are at the heart of what federal agencies such as
the CDC do; assessing risk is a key part of their mission. Does Pence
also think we should ignore warnings from the National Hurricane Center
if we’d rather not evacuate? Take unproven medications without worrying
about side effects? Start smoking, because the Surgeon General can’t
tell us what to do?
Apparently, yes, that is precisely the point. Not only does the Trump administration mean to ignore the advice of CDC, it wants to
cut the agency out of the loop entirely.
WASHINGTON — The Trump administration
has ordered hospitals to bypass the Centers for Disease Control and
Prevention and send all Covid-19 patient information to a central
database in Washington beginning on Wednesday. The move has alarmed
health experts who fear the data will be politicized or withheld from
the public.
The new instructions were posted recently in a
little-noticed document
on the Department of Health and Human Services website. From now on,
the department — not the C.D.C. — will collect daily reports about the
patients that each hospital is treating, the number of available beds
and ventilators, and other information vital to tracking the pandemic.
Under the same sort of logic that brought us, "
If we didn’t do any testing we would have very few cases,” we now have, if CDC can't give us any advice, then we won't have to follow it.
Yesterday,
John Barry wrote that, as cases spike, we are now facing a "second chance" to get the shutdown right.
During the 1918 influenza pandemic,
almost every city closed down much of its activity. Fear and caring for
sick family members did the rest; absenteeism even in war industries
exceeded 50 percent and eviscerated the economy. Many cities reopened
too soon and had to close a second time — sometimes a third time — and
faced intense resistance. But lives were saved.
Had
we done it right the first time, we’d be operating at near 100 percent
now, schools would be preparing for a nearly normal school year,
football teams would be preparing to practice — and tens of thousands of
Americans would not have died.
But getting the response "right" this time would require our leaders to take seriously their roles as stewards of public health and safety. It would mean extending public services rather than gutting them. It would mean protecting teachers rather than bullying them. And it would mean listening to doctors rather than silencing them. The Trump administration is doing none of that.
Worst of all, despite Benrnake's plea, the Congress is no nearer to offering the states the support they will need to see their people through the economic consequences of a second shutdown. In fact, this week,
Republicans there are demanding even more austerity measures as unemployment benefits are set to expire. All the conditions are in place to leave us with 50 failed states grappling with an even bigger pandemic come the end of the year. Barry closes out his article about the second chance by writing, "we won't get a third." But from the looks of things, we're going to have to at least hope there is a chance number two and half in there somewhere.