Running out the clock

The first thing to understand about this "bi-partisan" stimulus proposal is that it is, in fact, a total cave on the part of the Democratic leadership.   

The top Democratic congressional leaders on Tuesday embraced a $908 billion coronavirus relief framework -- a massive concession meant to prod President Trump and Senate Republicans into accepting a compromise as covid cases spike and the economic recovery shows signs of faltering ahead of the holiday.

House Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles E. Schumer (D-N.Y.) said in a statement that “we believe the bipartisan framework introduced by Senators yesterday should be used as the basis for immediate bipartisan, bicameral negotiations.”

The "framework" would amount to about a third of what the Democrats had been asking for which also was not going to be enough. And, of course, as a "starting point" it is only going to be watered down further from here. McConnell has already rejected this first offer, in fact. 

Senate Majority Leader Mitch McConnell (R-Ky.) has pushed for a smaller deal and it appears unlikely he is poised to support the bipartisan agreement.

He circulated a proposal on Tuesday that offered minimal aid to the jobless, in a sharp break with the bipartisan group that could represent an obstacle to a final deal.McConnell has also delivered an ultimatum, requiring any legislation to immunize businesses from coronavirus-related lawsuits. 

Nothing is written into a bill yet so the details of the "framework" are still fluid, as they say.  But according to this article we know it aims at a $300 per week boost to unemployment benefits matching the now expired emergency stop gap written by Trump after the original $600 provided by the CARES act ran out.  Today we learned another 712,000 new jobless claims were filed this week.  A lot of headlines highlight that the number is "fewer than expected" or down from last week, but as Atrios points out, "Every week since this began has been higher than the peak week of the Great Recession," so what are we really looking at here?  An historically large number of people need help and will continue to need it. $300 is not really help. 

The starting point framework includes $160 billion for state and local governments.  The notion of any state and local aid at all has previously been a non-starter for Republicans so expect that figure to come down.  Our friend, Senator John Kennedy was seen "trashing it" on TV today, in fact.  In any case, the starting figure is not enough.  According to, still incomplete estimates from the Center on Budget and Policy Priorities  state budgets are expected to take a hit of at least $194 billion.  This Brookings study figures that state and local revenues will take a hit of well over half a trillion dollars in the next few years.  Obviously we aren't going to get where we need to go from this "starting point." 

Certainly this $160 billion (but likely much less) sop isn't worth trading this for. 

The measure, spearheaded by Senator Joe Manchin III, Democrat of West Virginia, and Senator Susan Collins, Republican of Maine, would restore lapsed federal jobless benefits, providing $300 a week for 18 weeks; would include $288 billion for struggling small businesses, restaurants and theaters and $160 billion for fiscally strapped cities and states; and would create a temporary liability shield for businesses operating amid the pandemic.

"Temporary" or not, there can be no compromise where the US government allows your boss to simply order you to your death with no repercussions. 

Anyway, the punchline to all of this is now that the vaccines are almost ready, the political pressure to do more emergency stimulus will quickly reduce to zero. So Joe Biden can say all he wants about how whatever comes out of the lame duck session is a "first step," come the new Congress, the focus will be on the quickest way to just vaccinate everyone and tell them to get a job. Nevermind that the jobs are half gone and what's left out there is gig-a-fied beyond all recognition. That's the "new normal" all of this has been leading toward all along.  McConnell has run the clock out all year and the bosses have won the pandemic. They're even going to be shielded from future liability. The rest of us will just have to get used to it. 

Update: Well at least somebody gets it. 

Sen. Bernie Sanders (I-Vt.) on Friday announced his opposition to the bipartisan coronavirus relief package gaining momentum in the U.S. Senate, as jockeying intensified among lawmakers eager to cut a deal to provide relief amid renewed signs of economic weakness.

Sanders said he would vote against the $908 billion relief framework that has attracted a flurry of interest from Democrats and Republicans since it was introduced earlier this week. Sanders said he would consider backing it only if it is “significantly” revised. That package, broadly embraced this week by both senior congressional Democrats and more than a half-dozen Republican senators, leaves out some priorities among liberals such as another round of $1,200 stimulus payments.