No economic stimulus package: USA: Negotiations on the next economic stimulus package initially failed | message
The Democrats had recently tabled a compromise proposal worth around two trillion dollars (1.7 trillion euros), but the Republicans apparently did not want to go beyond the package they proposed of around one trillion dollars. “We’re far apart,” said House Chairwoman, Democrat Nancy Pelosi.
Treasury Secretary Steven Mnuchin stressed that Trump wanted an agreement. “But unfortunately we didn’t make any progress today,” he said. New negotiations only make sense if the Democrats come up with new proposals, he said. Trump, in turn, said on Friday evening at his golf club in the state of New Jersey that he was now having regulations drawn up that would enable him to enforce several measures without the approval of parliament. In this way, he wants to push through, among other things, the extension of increased unemployment benefits, a moratorium on evictions and a tax cut.
However, experts doubt that he would be able to implement all of this, because all measures that require new financial resources must be decided by Congress. There, the Republicans who control the Senate rely on the votes of the Democrats, who have a majority in the House of Representatives. Trump brushed the concerns aside, however. “You are always sued,” he told journalists. There is also enough money for the planned steps, he said. US media had reported that Trump simply wanted to reallocate existing budget funds to bypass parliament.
Since the beginning of the pandemic, the US Congress has already passed economic stimulus packages worth around three trillion dollars – which corresponds to more than ten percent of the annual economic output of the USA.
The Democrats are demanding, among other things, the extension of the increased unemployment benefit of 600 US dollars (around 510 euros) per week until the end of the year. The temporary increase for millions of Americans passed in March expired without replacement at the end of July because the two parties could not agree on a follow-up regulation. They are also calling for a temporary suspension of evictions, aid for tenants and more funding for states, municipalities and schools. “We cannot allow our children to remain hungry, we cannot allow children to become homeless or to be afraid of going to school,” said Pelosi.
The Democrats had already decided on the new stimulus package they are aiming for in the amount of around three trillion dollars in the House of Representatives at the end of May. The Republicans in the Senate didn’t even want to talk about it until the end of July. Among other things, they want all taxpayers to receive another $ 1,200 in direct aid to stimulate consumption.
The US economy is in serious crisis as a result of the coronavirus pandemic. The unemployment rate is a good 10 percent, which is historically very high for the USA. Experts also fear that millions of tenants will soon face eviction because they will no longer be able to pay their rent after losing their job.
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