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Stimulus Check Update and Stimulus Package Update August 13, 2020

Stimulus Check Update

Stimulus Check Update and Stimulus Package Update August 13, 2020

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Quick Overview

  • For the stimulus check and stimulus package, Treasury Secretary Steven Mnuchin reached out to the Democrats yesterday in order to make progress on the stimulus package negotiations.
  • The majority of the states are saying that they will not participate in Trump’s executive order of the unemployment benefits. That means the unemployment benefits would drop to $300 a week instead of $400 if you are in one of those states.
  • Weekly unemployment claims were released today. New weekly unemployment claims were 963,000. This is down from 1.2 million claims the previous week.
  • Covid-19 cases are back on the rise.

Party Updates

Treasury Secretary Steven Mnuchin reached out to the Democrats yesterday. This is first contact since they have spoken about the stimulus package since Friday. After their discussion, the leaders of the Democrats, Nancy Pelosi and Chuck Schumer, released a joint statement, which says: “The White House is not budging from their position concerning the size and scope of a legislative package. Democrats have compromised. The administration still does not grasp the magnitude of the problems that American families are facing. We are willing to resume negotiations once they start to take this process seriously. The lives and livelihoods of the American people, as well as the life of our democracy, are at stake”.

The Democrats want the Republicans to spend more money and Chuck Schumer, leader of the Democrats in the Senate, literally and repeatedly calls the Republicans stingy. The Democrats compromised from $3.4 trillion dollars, down to $2.4 trillion. The Republicans initial offer was $1 trillion dollars and Mnuchin now says that they are willing to “put more money on the table”. The Democrats want the Republicans to meet them in the middle at $2 trillion dollars, but Mnuchin said “no”.

The reason why the Republicans are not willing to spend more money is best summarized by what Treasury Secretary Steven Mnuchin said “The Democrats want the additional $1 trillion dollars because they look at the next two years and they project losses. The Democrats don’t think that the economy is going to open up, the Republicans do”. Due to these conflicting opinions, the Democrats and Republicans are not budging on their budgets.

Mnuchin proceeded to say “If the Democrats are willing to be reasonable, there is a compromise. If Democrats are focused on politics, there won’t be a deal.”. When Nancy Pelosi was asked whether the stimulus package would be delayed until September, she responded by saying “I hope not. People will die”.

President Trump gave his opinion and said at a press conference “the bill is not going to happen because the Democrats don’t want to talk about it”.

If the Republicans and Democrats cannot come to an agreement, then there won’t be a second stimulus check, there won’t be a second round of PPP money for the self-employed and small businesses, and depending on how the executive orders play out, there won’t be an extension of federal unemployment benefits. The Senate is currently in session and working even though the majority of Senators are at home in their respective states. There are only a handful of Senators in the chamber in the daily sessions. Therefore, the Senate is operating on a skeleton crew.

Analysts are saying that it will take bad economic data or a stock market crash in order to create a sense of urgency for the politicians to strike a deal on the stimulus package. However, White House Economic Advisor, Larry Kudlow, said there is little incentive to do so because “the numbers are coming in very nicely. Unemployment claims are coming back down. Jobs are going back up. There’s a housing boom. There’s a manufacturing boom.”

Economic News

Highlights

  • The amount of new people claiming unemployment came in at 963,000 for last week. This is down from 1.2 million claims the previous week.
  • There are currently 28.2 million Americans currently receiving some form of unemployment benefits. This is down from around 31 million the previous week.
  • The unemployment rate is currently at 10%, which is still worse than the peak of the Great Recession.

Economists are warning that a lot of this progress was due to the stimulus package and that without another one to keep the momentum going, we can see economic deterioration. Regarding President Trump’s executive order of the extension of unemployment benefits Treasury Secretary Steven Mnuchin said that the program could begin in 1-2 weeks.

However, Treasury Secretary Steven Mnuchin says a lot of things. Mnuchin said that the stimulus package would pass by the end of July. He said both parties would reach an agreement by last Friday.

Experts are saying that these executive orders would need at least a month to kick in. That is best case scenario if this executive order does not get challenged or simply fall apart. The funding from the executive order would be coming from a different source than the previous federal unemployment benefits from the stimulus package. Therefore, it’s a different system that each state would need to implement. So according to the experts, you’re looking at a minimum of a month.

Also, the executive orders call for the unemployment payments to be $400 a week. That is $300 coming from the federal government and $100 coming from the state government. Most states are saying that they don’t have that $100. So it’s looking more like it’s going to be $300 a week.

Covid-19 News

  • Corona cases are increasing again.
  • We broke our 3 day streak of under 50,000 daily cases.
  • We reported 56,000 cases yesterday.

In a Georgia district, schools reopened schools August 3rd for in classroom learning. Covid-19 cases began to emerge within the schools and 1,200 students and teachers are now under a two week quarantine. Former Georgia teacher Miranda Wicker told the news that “it doesn’t like this was as successful reopening”.

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