DC lost its breath for a moment when President Trump suddenly halted the coronavirus relief bill negotiations with House Speaker Nancy Pelosi, Treasury Secretary Steve Mnuchin, and Chief of Staff Mark Meadows. While Pelosi said that Trump had no care about the poor and the impact COVID has had on them, Trump’s economic team has a different point of view, and that involves more government spending.
White House Economic Advisor Larry Kudlow has consistently said that while a stimulus bill would help the economy in the short term, and bill does not define the economic recovery the United States is already experiencing. And for many Republicans, more government spending will have much worse effects down the road. This same sentiment is felt by lawmakers in the Senate, who refused to vote for McConnell’s second stimulus package due to the numbers it would add to the national debt.
Kudlow said that the weight of not coming to a compromise falls on the Democrats, not the Republicans. In an interview tip CNBC, Kudlow said, “We think we have been very flexible. And the view of the president and the view of Senate Leader Mitch McConnell is that we do not think the Democrats have been not only not flexible, but indeed they don’t really want to play ball. Senator McConnell said yesterday that he doesn’t think Speaker Pelosi will produce a result and they’re just stringing us along.”
Stephen Moore, a Trump economic advisor, also maintains that economic recovery is not dependent on more government spending. Moore said, “Agreeing to the Pelosi deal would be politically harmful for Trump. Getting a good deal would be politically beneficial for Trump. And no deal falls somewhere in the middle.”
President Trump has changed his tune, moderately, about passing some sort of relief. He has asked Nancy Pelosi to send him a bill that provides $1,200 stimulus checks. In a tweet, he also said, “The House and Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Businesses. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now!”