The federal government’s temporary expenditure budget will expire on December 11, but the new round of expenditure bill has been delayed;
At the end of December, 12 million American workers will lose unemployment insurance benefits and other key guarantees, but the new round of epidemic relief plan they have been waiting for is still “difficult to give birth”.
However, the U.S. Congress is about to enter the holiday adjournment period.
Can the pandemic relief program, which is vital to the unemployed, small and medium-sized enterprises and local governments in the United States, miraculously appear in a few days?
Why is the epidemic relief bill “difficult to give birth”?
On December 3rd local time, the Speaker of the U.S. House of Representatives, Democrat Pelosi, and Senate Majority Leader McConnell, made their first call since the November election to discuss the new epidemic relief plan.
In fact, due to great differences in the total amount of aid, the specific content and other aspects, the bipartisan negotiations on the new round of the epidemic relief bill have lasted for months.
On December 1, several members of the U.S. Senate from both parties jointly launched a draft bill totaling $908 billion in pandemic relief, of which $288 billion was for small business assistance, $180 billion for additional unemployment benefits, and $160 billion for state and local governments. .
But the plan is far below the $2.2 trillion previously requested by Democrats and more than the $500 billion proposed by Republicans.
McConnell did not support the plan after it was proposed.
△ Senate Majority Leader McConnell, Republican
Why is the new epidemic relief bill difficult to give birth?
The U.S. economy may “bottom out again” Can the economic stimulus plan solve the problem?
On the one hand, the new round of epidemic relief bill is still “difficult to give birth”, and on the other hand, tens of millions of American people urgently need help.
At the end of December, the epidemic unemployment assistance and emergency unemployment benefits during the epidemic in the United States are about to expire. Fox News reported that if Congress cannot agree on a new round of pandemic relief bills before the end of the year, 12 million Americans will lose the relief money they rely on.
Many ordinary Americans are overstretched. Let’s listen to their story:
“It’s not easy. I lost my job. It’s been four months. I don’t have any income.”
“I lost my job and didn’t get a job again as before.”
“We have spent all our savings. We just changed to the power company last week, and we can’t afford to pay this month’s electricity bill.”
Several American economists predict that the U.S. economy will “double bottom out” in the first quarter of next year.
JPMorgan Chase recently predicted that the U.S. economy will shrink by 1% at an annual rate in the first quarter of 2021. Moody’s and S&P, the two rating agencies, predict that they will shrink by 1.5% at that time.
The latest data released by the U.S. Department of Labor shows that 712,000 people applied for unemployment benefits for the first time in the United States last week, which is still high overall.
Speaking at a Senate Committee on Banking, Housing and Urban Affairs hearing on December 1, Powell said that overall, the pace of labor market improvement has slowed down, and millions of Americans are still unemployed, especially for low-income people, women, African-Americans and Latinos.
U.S. Treasury Secretary Mnuchin stressed at the hearing of the House Financial Services Committee on December 2 that Congress needs to pass a new round of economic stimulus plans as soon as possible under the current economic situation.
Mnuchin: “In the current economic situation, I still believe that a targeted fiscal stimulus package is the most effective response at the federal level.”