Republicans Flame Mnuchin ?

Republicans Flame Mnuchin

This is my stimulus update for Friday, October 23.

So if you watched the debate last night, which was way better than the one moderated by Chris Wallace, you know that one of the questions was about COVID relief, the moderator Kristen Welker asked President Trump why there hasn’t been more relief for the people, and Trump basically blamed Nancy Pelosi.  And then Biden blamed McConnell and said Democrats passed the HEROES Act at the beginning of the summer, it was actually late spring, May 15, then Trump repeated his line that he’s been saying for months now that the HEROES Act was basically just a big bailout for poorly-run Democratic states and cities as well as money for illegal immigrants.

Biden tried to counter that line by saying he doesn’t even see red or blue states.  So basically the same thing we’ve been hearing for months now, both candidates basically repeating the party lines on this issue.

Don’t want to read? Watch the video here!

Yesterday on a call with Democratic House leadership, Speaker of the House Nancy Pelosi told her leadership team that several Democratic members of the House have told her that they don’t want a vote before the election on stimulus unless the Senate will do the same.  I would love to know who these Democratic members of Congress are because that makes no sense to me.

Why not look like the good guys before Election Day and let Mitch drag his feet?  I don’t get it unless there is some kind of ulterior motive here.

Meanwhile in the talks, reports are that Treasury Secretary Steven Mnuchin is giving into Pelosi’s demands left and right, that he has currently committed to a top line in the 1.9-trillion-dollar range, including at least $300 billion for state and local government, and many Senate Republicans hate this, they’ve been saying for a while that Mnuchin plays too soft with Democrats and gives in to their demands too readily.  Washington Post is reporting that Mnuchin also agreed to reduce the payments to farmers, remember in the HEALS Act, remember that one from what was it, July, August we were talking about that, in the HEALS Act Republicans proposed twenty billion for farmers and agriculture, the Post is reporting that according to two people involved in the stimulus talks or at least with knowledge of them, that Mnuchin has agreed to reduce payments to farmers and instead allocate that money to food boxes, right, like for food banks.

And course Republicans don’t like that because farmers tend to vote Republican while those at food banks tend to vote Democratic, that’s just facts.  Post is also reporting that Mnuchin has, and I quote, “left open the possibility of allowing even more money to flow to states and localities via Community Development Block Grants sought by Democrats.”

These specific kinds of grants are not new, they would not be a new thing, these are basically very flexible grants from the federal government to state and local governments for broad purposes to really do what they please with, there’s not a whole lot of oversight from the federal government in terms of the specifics of how money from these Community Development Block Grants are used.

In my town, the Community Development Block Grants from the CARES Act, the money was basically funneled into local non-profits to “prevent, prepare for and respond to coronavirus,” and this money primarily goes to low-income families, at least where I live, and again, politics, many low-income families tend to vote left, so Republicans are like, “What the heck, Steve?”

Post is reporting that one Senate G.O.P. aide said that, “He negotiates harder with his own side than he does with her. Folks over here are sick of it,” this individual said that Republicans were “reaching a boiling point with him” as Mnuchin “gives and gives and gives and gets nothing in return.”  Another aide said, “Fair to say the feeling is he’s giving away the store. No one is surprised, but yes frustrated. The idea that our conference is going to go along with whatever bad deal he cuts with Pelosi is completely unrealistic.”

Wow, this individual is just calling whatever deal this is “a bad deal,” but remember you don’t need every Republican Senator to go along with it, if all 45 Dems in the Senate and the 2 Independents, Angus King and Bernie Sanders, if all 47 non-Republicans go for it, you’d only need 13 Republicans.

In terms of the big areas of disagreement between Pelosi and Mnuchin, it’s still, as it has been for a long time, the allocation for state and local governments as well as the liability protections for businesses, there are many smaller hills that Mnuchin and Pelosi have to hammer out, but these two things, state and local and liability protections, are the mountains that have to be scaled in order for a deal to be struck.

They’ve basically been done negotiating stimulus checks for a long time now, they agree on that, it’s these two items that we need to look at.  Pelosi said yesterday that she would not accept less of a bill to get it done sooner, but she wants the best bill possible.

Of course the unfortunate thing here is that as this bill looks “better and better” for Pelosi, it of course looks worse and worse to Senate Republicans.  Those are facts, despite the fact that the president is incredibly confident that Senate Republicans will come along.

One more thing, Larry Kudlow was talking to reporters about stimulus this morning, basically said there are still significant policy differences and that he is neither optimistic nor is he pessimistic, but he’s just reporting the facts, and as always when talking about stimulus, the man just looks annoyed, he’s convinced himself that we’re in a strong V-shaped recovery, and obviously when you view the economy through those lenses, you’re not a big fan of stimulus, if the economy is already in a strong recovery, why would you think there’s a need for more stimulus, so Larry was just being annoyed with questions about stimulus and stimulus negotiations, as usual.

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