President Donald Trump’s interview with Joe St. George hinted that another stimulus package sparked a sense of relief for millions of Americans struggling during the Pandemic.
According to The Hill, the stimulus package may depend on the monthly jobs report since the monthly report from May displayed that the country acquired 2.5 million jobs. Analysts speculated that if the employment rate continues in June, lawmakers may steer away from another round of a stimulus package, emphasizing economic recovery indicators.
The Hill reported that lawmakers would be more likely to extend increased unemployment benefits currently slated to sunset at the end of July.
“They don’t see the market crashing. They see a better-than-expected jobs report last month, so their focus is very much targeted around a back-to-work narrative,” according to Ben Koltun, Washington’s Beacon Policy Advisors’ Senior Research Analyst.
“If there’s a bad jobs report, and when you see more people out of work than last month. Then there may be an impetus by more Republicans in the conference to provide broader support and more stimulus spending than they’re talking about right now.”
Although President Trump’s latest remarks indicated that a “very generous” second round of stimulus package for the American people would be released soon, lawmakers we discussed with remained unclear towards the path forward.
Jesus Garcia, Democratic Illinois Congressman, supported the second round of stimulus package, he concluded with alerting the public that the Pandemic is not yet over.
“Without a doubt, we owe it to the American people,” according to Jesus Garcia. “The high unemployment rates across the country argue for at least one more stimulus check and an extension of unemployment insurance benefits.”
“Our states, our local governments need the support. They’ve lost 20% or more of revenue,” Jim Costa, Democratic Congressman, added.
“We have spikes increasing in COVID-19 in many states across the country, including California. We need to provide the resources and the support in terms of the stimulus package because we’re not out of the woods yet.”
States need to budget for their annual operations, unlike the federal government that borrows to finance its operations, resulting in spending cuts in lean times. Even both liberal and conservative economists agreed to be harmful.
There’s a propagated expectation in Congress that local aid and state would be the epicenter of next month’s endorsed COVID-19 rescue bill, onward with another $300 billion or so round of $1,200 stimulus checks.
But skeptics of big state aid packages stated it would be ample, for now, to grant further flexibility in utilizing the $150 billion state aid installment enacted in March. And have states use their emergency funds, which had grown to more than $100 billion in cash before the Pandemic.
Rep. Tim Burchett, R-Tenn., called for a safe return to jobs instead of continued extra unemployment bonuses.
“In Gatlinburg, Tennessee, right now, they’re offering a $1,000 signing bonus for servers in restaurants because if you’re getting paid $500 or $600 more a month to stay home, dadgummit, you’re going to stay home. It’s just human nature,” according to Tim Burchett. “We’ve got to get away from that. We’re depleting the Treasury at a record pace, trillions of dollars in debt. America needs to get back to work.”
But with a surge in COVID-19 cases in states such as Arizona, Florida, and Texas, social anxiety grew as the second wave of infection and looming economic decline. Local budget and states may harm the economy since they may require more federal aid to prevent the potential loss of 6 million jobs.