With less than two months until the election, the odds for another stimulus package indented to help small businesses and increase unemployment benefits are near to zero. After the last week's vote, it's highly unlikely that the Republican-backed stimulus plan would come into effect before the election. Negotiations between both parties ended in a deadlock as neither of them could agree on the size and makeup of another round of stimulus. However, on the other hand, the economy is still suffering. More small businesses are shutting down, first time unemployment’s claims remain relatively high and states and local budgets are collapsing.
Greg Valliere described the situation as … “The economy seems to be running out of steam in the last few weeks”. He backed his analysis by relating to the statement issued by The Fed Chairman that more stimulus is urgently needed from the Congress. For instance, retail sales growth declined in August, 860,000 more American filed for first-time unemployment claims last week. Yelp reported that more than the majority of restaurants that closed during the pandemic might never re-open. Since July large businesses filing for bankruptcies spiked 244%. Valliere fears that if the government fails to put out another stimulus package, more small businesses will close, unemployment would increase locally and increasing evictions as well. Similarly, The Fed Chairman has also insisted that another stimulus is necessary. He thinks that the initial response from the fiscal authorities was very effective and efficient and expects the government to do the same to keep up with the recovery speed. The chairman emphasized the fact that about 11 million jobs lost due to the pandemic are of those industries that suffered the most from the global crisis and without government aid it will be difficult for them to survive.
The question that comes into mind is why is Congress overlooking this problem and delaying it? Is it because Democrats are confident that the blue wave is coming, and they would rather wait until next year and give out a larger stimulus package?
https://www.cnn.com/2020/09/18/business/stimulus-goldman-sachs-economy-gdp/index.html
2 comments:
I definitely feel that both parties are waiting until after the election to take action. The Dems and Reps do not want to give any ground to the other side, potentially swaying voters. It is comical how they are willing to let Americans struggle if it can help paint a bad picture of their opposition.
I agree that each party is holding off until after the election in November. Each is confident that the election's outcome will be in there favor and thus they may be preparing for what they will do after winning. With all the other currently political issues, it may also be something that has been placed on the back burner.
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