Some in Congress Already Planning for the Next Round of Stimulus
Article from For Liberty by Norm Leahy.
Congress is preparing to approve, and President Donald Trump said he is willing to sign, another round of fiscal stimulus, this edition costing more than $480 billion. Officials Washington is already buzzing about a fourth round. Its price tag: to be determined.
These billions of (borrowed) dollars will be used for small businesses, hospitals, and additional coronavirus testing.
What might an even bigger, even more expensive, stimulus bill contain? According to Treasury Secretary Steve Mnuchin, infrastructure, a tax cut, and a big bailout for state budgets:
It would be infrastructure. The president’s been talking about infrastructure since the campaign. Roads, bridges, broadband, especially broadband now to rural America is very important. We’ve talked about incentives for restaurants, sports, entertainment because these businesses have been impacted. The president has talked multiple times about a payroll tax cut. And we’ve also, we’re talking about in the case of states, we’ve heard from the governors and the fiscal issues of the states.
The possible cost of the state and local government budget bailout: $500 billion.
The dollar amounts are getting so big, and the debt levels so high, that even Sen. Mitch McConnell is sounding a warning:
“I think it’s also time to begin to think about the amount of debt we’re adding to our country and the future impact of that. … Until we can begin to open up the economy, we can’t spend enough money to solve the problem,” McConnell said.
“Let’s weigh this very carefully because the future of our country in terms of the amount of debt that we’re adding up is a matter of genuine concern,” he added.
That’s the thing about the trillions in spending that have been approved in the last few weeks: it’s all borrowed money. Every dime of it will have to be repaid (with interest).