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Original Caption: Trump Signed America’s “Life Saving Money” Really Arrived
Source: Beijing Commercial Daily
At the last minute, Trump finally did not disappoint the outside world and signed the economic stimulus bill that left him dissatisfied. Trump’s compromise was expected. In the last month of his mandate, the pressure of the two parties, the “out of control” of the epidemic and the economic recession, piled up on Trump’s desk. If you think of “stubbornness,” you must acknowledge the situation. Of course, this check for $ 900 billion can only be considered an emergency for the current economic situation in the United States, and hope is already tied to the next administration that will soon come to power.
Package plan
After a weekend of hesitation, Trump finally made the right decision. On the night of the 27th, local time, the White House confirmed that the President of the United States, Trump, had signed the New Crown Epidemic Aid Act and the Comprehensive Grouping of Federal Government Expenditures Act for a total of 2.3 trillion dollars.
Specifically, $ 900 billion in this bill implies the most anticipated relief plan for the new corona epidemic. Although the detailed terms of the bill have yet to be announced, House Speaker Nancy Pelosi has previously released a summary and congressional aides have revealed some details.
The bill includes roughly: providing individuals $ 600 cash and $ 300 a week for unemployment benefits (for 10 to 16 weeks); in addition, small businesses will receive US $ 284 billion in aid; US $ 82 billion will be used for universities and schools Education grants, US $ 10 billion will be used for childcare; $ 56 Billion in Medicaid Will Help States Increase Testing for COVID-19; US $ 45 billion will be used to help the transportation industry, such as airline employees; US $ 25 Billion Will Be Used for Family Rent Aid; USD 13 billion for food aid; USD 7 billion for broadband internet assistance; USD 4 billion for the establishment of the International Vaccine Alliance.
In addition to the highly anticipated new crown bailout bill, the bill signed by Trump also includes a $ 1.4 trillion allocation plan, which will provide funding to the federal government through September of next year. This means that some departments of the federal government may temporarily escape the fate of the suspension.
Like a new round of economic stimulus bills that the outside world has been asking for for months, Trump’s assent turns the market into a carnival. Following the announcement of Trump’s signing of the bill, US crude oil recovered all losses for the day. On Monday, oil prices began to rise after falling 1.66% to $ 47.5, and are currently rebounding to around $ 48.3 a barrel. Futures on the US Standard & Poor’s 500 stock index also went from a 0.3% decline to a 0.5% gain, setting a new 4-day high of 3715 points.
Of course, this is not all that Trump wants. Despite the signing of the new $ 900 billion crown bailout plan, Trump also declared in a statement on the night of the 27th that the House of Representatives will vote on the 28th to directly stimulate money for the people. To increase the vote from $ 600 to $ 2,000, “More money will be given! I will never stop fighting for the American people.”
Additionally, in response to some provisions of the bill, Trump said he would send a “formal revocation request” to Congress requesting that unnecessary and wasteful articles be removed from the bill.
Repeated games
In any case, after months of play between the parties, this new bailout bill finally came true. In fact, a week ago, on the 21st, the US Senate and House of Representatives passed a new version of the New Crown Relief Act to alleviate the impact of the epidemic on homes and businesses.
Under the agreement, Trump was originally scheduled to sign the bill on the night of the 24th, but Trump suddenly announced the suspension of the signing as it was about to be signed, calling the bill a “disgrace” and requiring that Members of Congress change the amount of relief for each person. $ 600 to $ 2,000, or $ 4,000 per couple. Additionally, Trump also said that the bill contains too much foreign aid, but it is not enough for Americans in difficult circumstances.
As soon as the news broke, the United States was in an uproar. In response to Trump’s request to increase the cash grant for the bailout bill, House Speaker Pelosi voiced her support for Trump’s decision, but Republican lawmakers opposed the proposal.
Previously, the US epidemic unemployment benefit and emergency unemployment compensation expired on the 26th. If the new bailout bill does not go into effect, 14 million unemployed US people will lose their “vital money. “critical during the end of the year holidays. The partial suspension began on the 29th.
After repeated delays for a week, things finally ushered in a turning point. Trump on the night of 27TwitterThe earlier notice said “the new crown bailout bill will have good news,” and then Trump finally signed the bill before the government shutdown deadline at midnight on the 28th.
According to the Associated Press, Trump was on vacation at the West Palm Beach golf course that day. The bill was sent to Trump’s private residence in Florida for signature. It is not clear why he changed his mind.
According to Sun Lipeng, a research associate at the China Institute of Modern International Relations, although Trump eventually signed it, his thoughts have not changed. Sun Lipeng analyzed and noted that Trump did indeed use the Garnishment Control Act of 1974 (Garnishment Control Act of 1974) when he signed the bill. That is, although both the Senate and the House of Representatives approved it, Trump conditionally signed it. Some terms were agreed and others were not approved.
Sun Lipeng candidly said that Trump actually made a limited commitment. Under political pressure from both parties, under pressure from the government shutdown and the severity of the epidemic, as well as the expiration of the latest round of aid bills, Trump feels like when I hit a critical point, I need to sign the bill, but I still have some of my position, like the insistence on the $ 2,000.
Sun Lipeng further noted that it may not be easy to say how the content of Trump’s reserve will play out in the future. After all, this reserve has only 45 days of authority, plus, if Bi takes the stage, she can let him go. In other words, it is a question of position.
It’s worth mentioning that this time the disagreement over the new crown bailout bill is an internal conflict between Trump and the Republican Party. When the bailout bill was voted on last week, it garnered support from more than two-thirds of members of both houses. This means that if these lawmakers don’t waver, even if Trump vetoes, Congress will have enough votes to revoke Trump’s veto power. So whether Trump signs or not, the bill will eventually pass.
I can not wait
Liu Xiangdong, deputy director of the Economic Research Department of the China Center for International Economic Exchange, said that as long as the Congress reaches an agreement, the president will listen to the general opinions of his party no matter how he has opinions, especially now that the epidemic situation in the United States it is repeated and the previous rounds of stimulus plans cannot do the United States. If you continue to support him, under this circumstance, the interests of both parties are common. Although Trump ran into obstacles last week, he has actually been pushing for an economic stimulus plan to be introduced to score points in the fight against the epidemic.
In March of this year, the United States Congress passed a $ 2.2 trillion COVID-19 relief program called the CARES Act, which is also the largest financial assistance program in United States history. But the good times didn’t last long. Under the repeated epidemics and economic recession, the $ 2.2 trillion of funds obviously could not keep quenching their thirst. Therefore, the call for a new round of relief plans grew.
According to the survey, 62% of respondents believe that the unemployment benefit of $ 600 is still too small, and most people said it should be $ 1,000 or more. On the same day that Trump signed the $ 2.3 trillion bill, the cumulative number of new confirmed crown cases in the United States surpassed 19 million and the cumulative death toll surpassed 330,000.
“The US epidemic clearly shows no improvement now. The vaccine is expected to be effective. In the short term, variation and repetition have added variables,” Liu Xiangdong said. In this case, although the debt is getting higher, it must be increased. Only in this way can we ensure the normal functioning of society and ensure employment and other issues with a large financial investment. The debt problem can only be solved by the next government. Europe, Japan and South Korea are promoting economic stimulus plans. They can only remain seated. Now only fiscal policies can play a role in stabilizing society and employment.
Sun Lipeng also expressed a similar opinion. Now it is obvious that the US economy is unbearable. This round of US $ 900 billion is not enough and can only be used as an emergency measure. The rebound in the previous three quarters did not really mean that the US economy was normal, but was basically supported by the previous four rounds of fiscal stimulus and loose monetary policy.
Sun Lipeng cited data indicating that the loss of US GDP caused by the epidemic was approximately US $ 2.1 trillion, and that the impact on physical industry and the labor market was even greater than after the 2008 financial crisis. Let’s take employment as an example. Since the epidemic, the number of people employed in the United States has lost 20 million and there are still more than 10 million who have not recovered. ”This means that the repair will take a long time.
In Sun Lipeng’s view, after Biden takes office in February and March next year, an economic stimulus plan can be launched. The scale will likely be around $ 2 trillion to $ 3 trillion. The next $ 2 trillion to $ 3 trillion from Biden will be managed. Short-term, after all, unemployment benefits will expire at that time, and long-term content must be managed as well, including job promotion. The main effect of this bill is to alleviate the emergency and the other is to prevent the government shutdown.
Beijing Business Daily Reporter Tao Feng Tang Yitian
Internal reporter Zhao Tianshu
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