President Trump promised a solid economic recovery after the COVID-19 shutdown, which forced businesses to close and workers to be furloughed. While economic recovery will be a central campaign issue for Americans, White House economic adviser the economy is moving in the right direction.
In an interview with Fox News, Kudlow said that this movement is not dependent on another stimulus package, although it would help. But if Congress can’t come to some form of a compromise, the numbers should move upwards regardless. He said, “We are in a self-sustaining recovery. Besides the jobs, we’re in a housing boom, we’re at an autos boom, we’re in a consumer spending book. Small businesses have greater confidence.”
Fiscal conservatives have been openly opposed to passing another large spending bill. While there was overwhelming consensus to pass the CARES Act, senators like Rand Paul disagree with putting more money on the government credit card, and worry about longterm effects on the country. But while there is pressure from senators in tough reelection campaigns to move some legislation to the floor, without Democrat support, it would not pass by a Republican majority vote alone. And of course, would then have to move to the Democrat controlled House.
Kudlow, however, said that some form of a recovery bill would help speed up the effort. He said, “I’m not saying the recovery is dependent on it but I am saying it would help. It could make things even better. So why don’t we just take those four or five areas, do it narrowly, do it in a targeted way and let’s get things done for heaven’s sake.”
McConnell plans to bring his latest version of the second aid bill to the floor for a vote on Thursday, and has been working on the bill’s language for weeks.
Why this matters: Trump has said numerous times on the campaign trail that if Biden wins in November, America will go into a massive recession. He said that because of Biden's tax plans, on top of what happened because of the coronavirus shutdown, America won't recover. The Democrat's base wants more government spending, so during the new relief bill negotiations, they don't have a trump card. For Republicans, however, they are fine without another large spending bill, and therefore, cannot be moved. And actually, all that happened is McConnell was able to bring the number down further. If the Democrats don't vote for the bill on Thursday, they will have a lot of explaining to do to their base.
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