[ad_1]
Original Title: North American Watch 丨 The Bailout Bill Has Been Broken Again! The US economy is hit again
On September 10 local time, the new version of the economic stimulus bill proposed by the Republican Party failed in the United States Senate, greatly increasing the possibility that a new round of measures could not be introduced. relief from the epidemic before the November 3 elections, which not only brought the United States economic recovery. The increased uncertainty has also compounded the problems of corporate layoffs, unemployment compensation and tenant evictions.
The New York Times reported that as Democrats attacked the shrinking Republican plan, there is little hope that the United States will introduce a new round of relief measures for the epidemic.
The two sides have a big dispute, relief measures are difficult to produce
The United States Senate held a procedural vote on the economic stimulus bill proposed by the Republican Party on September 10. Although the result of the vote was 52 votes to 47, it failed to obtain the 60 votes necessary to advance the legislation.
This failure has greatly increased the possibility that the United States Congress will not be able to introduce a bailout bill before the general election. After passing the provisional appropriation bill that allows the federal government to continue operating after September 30, members of Congress are expected to leave Washington and return to their hometowns to campaign. There is not much time left to prepare for the change of Congress.
This GOP-proposed bill includes an additional $ 300 weekly unemployment benefit, a second round of small business loans and funds for school resumption, testing of new crowns, vaccine development, etc., but does not include the that Democrats have been asking for. State and local government ransom funds as well as ransom checks sent directly to the American people.
The bill is called the “slimmer version” of the economic stimulus bill, and the scale is between $ 500 billion and $ 700 billion, which is much lower than the $ 2.2 trillion that Democrats expect to see, and also lower than that proposed by Senate Republicans on July 1. Billions of dollars. Democrats have long opposed this, thinking the bill is “thin” but a political stunt. The purpose is to provide political coverage to Republican congressmen during this year’s change of Congress.
Ahead of the vote, House Speaker Pelosi and Senate Minority Leader Schumer have stated that Democrats will block passage of the bill. When Pelosi described his opposition to the Republican bill to the media that day, he said, “We have a tough problem. Don’t present a sterile bill.” In his view, this is a “Republicans know that Democrats never Bills that will be borne.”
Schumer said the same day: “While the president lied to the American people about the new corona virus, the Senate Republicans also spiritually imitated. Republican leaders once said in an internal speech that addressing this issue is” lack of urgency. “In his view, the idea that Democrats are responsible for the failure to introduce relief measures is ridiculous, and that responsibility should be borne by Republicans, as evidenced by the” records. “
US Senate Republican Leader McConnell said in his speech that day that Democrats believe the real enemy is their political opponent: “They can tell American families that they are more concerned with politics than bailouts.” . He believes this vote will “expose” how Democrats get in the way, “they don’t want to introduce any relief measures to benefit American families before the election.”
Bloomberg said that because relief measures are difficult to produce, America’s economic recovery has become more fragile.
The unemployment problem is difficult to solve and the rental crisis is approaching
The failure of the Republican economic stimulus bill to break down barriers indicates that a new round of epidemic relief measures may not be introduced before the US election, and millions of Americans may not receive enhanced federal unemployment benefits. . Under the “Care Act” enacted by Congress in March of this year, the unemployed can receive an additional $ 600 in benefits per week, but this benefit expired at the end of July. Although the White House subsequently requested an additional federal unemployment compensation of $ 300 a week through an executive order, according to estimates, the funds will soon run out.
With the reduction of federal unemployment benefits, the unemployment situation in the United States has not improved significantly, causing widespread concern. On September 10 local time, the U.S. Department of Labor released data showing that in the week ending September 5, the number of people who applied for unemployment benefits for the first time under the unemployment benefits plan. Conventional unemployment was 884,000, which was the same as the previous week, and the number of continuing claims for unemployment benefits increased. To 13,385 million, highlighting the weak recovery of the labor market.
Gregory Dakko, chief US economist at the Oxford Economics Institute, said: “The current economic recovery is fragile. Unless additional stimulus measures are taken, the economic recovery will be more susceptible to downside risks … No question The disappearance of unemployment benefits will put pressure on household income and hamper consumer spending. “
Personal Consumption Spending represents approximately 70% of the total US economy and is the primary engine driving the growth of the US economy. Once consumer spending takes a hit, the pace of the US economic recovery will inevitably slow. At the same time, as more and more businesses announce layoffs and many small businesses run out of funds, the dystocia of the new round of relief measures may have further negative impacts on people’s livelihoods, which in turn It will once hurt consumer spending and more hit the American economy.
With the $ 25 billion salary support plan for the aviation industry set to expire at the end of September, many airlines have already announced layoff plans in advance and more than 75,000 jobs may be cut this fall. But by including this “reduced version” of the economic stimulus bill, the wave of layoffs that the US aviation industry is about to face seems to have been forgotten. On the other hand, the Goldman Sachs Group survey shows that only 16% of small businesses can continue to pay wages after the first round of loans is exhausted, but they have never expected a new round of loan plans.
Of course, life for all types of companies is often difficult. According to data provided by the “Bankruptcy Data” website, as of August 17, a record 45 large companies have filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Law, and each company has assets for more than a billion dollars. At the same time, this year, 157 companies with debts of more than $ 50 million have filed for bankruptcy and 24 retail companies with assets of more than $ 50 million have filed for bankruptcy.
Bankruptcy often means layoffs, and after losing your jobs and not receiving full unemployment benefits, it will have a ripple effect. For example, tens of millions of American tenants can face the fate of being evicted because they cannot pay their rent. According to estimates by different agencies, the number of people at risk of becoming homeless in the future ranges from 20 million to 40 million, which is a staggering number.
The Centers for Disease Control and Prevention (CDC) recently issued a nationwide order temporarily prohibiting landlords from evicting tenants who are in arrears to reduce the possibility of spreading the new corona virus. This order covers more than 40 million tenants, but the National Low Income Housing Coalition noted that this suspension of eviction measures based on the Trump administration’s executive order is only an interim measure. After the order expires, the rent owed will continue to push tenants into the abyss. The organization asked Congress and the White House to provide rent relief as soon as possible, but it seems unlikely for now. (CCTV reporter Gu Xiang)
Massive information, accurate interpretation, all in the Sina Finance APP
Editor in Charge: Liu Wanli SF014
