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Plan Beats No Plan Plan Beats No Plan
(6 months later)
This article is part of David Leonhardt’s newsletter. You can sign up here to receive it each weekday.This article is part of David Leonhardt’s newsletter. You can sign up here to receive it each weekday.
Senate Democrats and the Trump administration seem to be on the verge of a compromise agreement on a stimulus bill. We’ll find out more about the details of that deal as the day goes on. This morning, I want to spend a moment on the lessons of the political debate about the stimulus over the last few days.Senate Democrats and the Trump administration seem to be on the verge of a compromise agreement on a stimulus bill. We’ll find out more about the details of that deal as the day goes on. This morning, I want to spend a moment on the lessons of the political debate about the stimulus over the last few days.
There were two key facts: Congressional Republicans produced a deeply flawed stimulus bill. Congressional Democrats did a deeply flawed job of managing the politics of that same bill.There were two key facts: Congressional Republicans produced a deeply flawed stimulus bill. Congressional Democrats did a deeply flawed job of managing the politics of that same bill.
The bill that Senate Republicans produced over the weekend was problematic in multiple ways. It appeared likely to do only a mediocre job of slowing the spread of the virus, halting the economic downturn and protecting American democracy. Consider:The bill that Senate Republicans produced over the weekend was problematic in multiple ways. It appeared likely to do only a mediocre job of slowing the spread of the virus, halting the economic downturn and protecting American democracy. Consider:
The bill contained no guaranteed aid to state governments, as Mike Konczal of the Roosevelt Institute noted — and state aid is one of the most effective forms of economic stimulus.The bill contained no guaranteed aid to state governments, as Mike Konczal of the Roosevelt Institute noted — and state aid is one of the most effective forms of economic stimulus.
“The help for small businesses fell grievously short,” Steven Rattner explained in The Times.“The help for small businesses fell grievously short,” Steven Rattner explained in The Times.
The bill would allow corporations “to fire people while still taking bailout money,” as Business Insider’s Linette Lopez wrote — meaning unemployment could spiral.The bill would allow corporations “to fire people while still taking bailout money,” as Business Insider’s Linette Lopez wrote — meaning unemployment could spiral.
The bill would “deny aid to many nonprofit institutions like nursing homes and group homes for the disabled,” my colleague Paul Krugman wrote.The bill would “deny aid to many nonprofit institutions like nursing homes and group homes for the disabled,” my colleague Paul Krugman wrote.
The bill did little to make sure the country can hold an election this November even if in-person voting is impossible in some places.The bill did little to make sure the country can hold an election this November even if in-person voting is impossible in some places.
Most notoriously, the bill included a $425 billion fund for businesses that Treasury Secretary Steven Mnuchin could “do basically whatever he’d like with,” Amanda Fischer of the Washington Center for Equitable Growth explained.Most notoriously, the bill included a $425 billion fund for businesses that Treasury Secretary Steven Mnuchin could “do basically whatever he’d like with,” Amanda Fischer of the Washington Center for Equitable Growth explained.
Given all of these flaws, you might think that the Democrats would be winning the political debate over the bill. They weren’t. The news yesterday was full of blaring headlines about Democrats blocking an emergency bill at a time when the country is clearly in crisis. The Democrats looked like the ones standing in the way of an urgent piece of legislation.Given all of these flaws, you might think that the Democrats would be winning the political debate over the bill. They weren’t. The news yesterday was full of blaring headlines about Democrats blocking an emergency bill at a time when the country is clearly in crisis. The Democrats looked like the ones standing in the way of an urgent piece of legislation.
The mistake they made was allowing the Senate, which is controlled by Republicans, to begin working on a bill while the House, which is controlled by Democrats, waited passively. As a result, there have been only two options for much of the last few days: the Republican plan and no plan.The mistake they made was allowing the Senate, which is controlled by Republicans, to begin working on a bill while the House, which is controlled by Democrats, waited passively. As a result, there have been only two options for much of the last few days: the Republican plan and no plan.
House Democrats did finally produce their own bill yesterday. But it was too late to have the effect that it could have had earlier.House Democrats did finally produce their own bill yesterday. But it was too late to have the effect that it could have had earlier.
Some progressives responded yesterday by complaining about the headlines that described Democrats as blocking the bill. But Senate Democrats were blocking the bill. The problem wasn’t the headlines, it was the Democrats’ strategy. If they’re smart, they won’t make the same mistake again in the coming weeks.Some progressives responded yesterday by complaining about the headlines that described Democrats as blocking the bill. But Senate Democrats were blocking the bill. The problem wasn’t the headlines, it was the Democrats’ strategy. If they’re smart, they won’t make the same mistake again in the coming weeks.
For more …For more …
The Atlantic’s David Frum argues that the government should not be taking an ownership stake in companies that it’s bailing out now: “This is not 2008. As much as any laid-off worker, big companies that are in trouble are in trouble through no fault of their own. There’s no justification for punitive measures such as gov’t equity stakes.”The Atlantic’s David Frum argues that the government should not be taking an ownership stake in companies that it’s bailing out now: “This is not 2008. As much as any laid-off worker, big companies that are in trouble are in trouble through no fault of their own. There’s no justification for punitive measures such as gov’t equity stakes.”
The Times editorial board says that the Republicans’ Senate bill offered “a lot of help for corporate executives and shareholders, and not nearly enough for American workers.” The editorial adds:The Times editorial board says that the Republicans’ Senate bill offered “a lot of help for corporate executives and shareholders, and not nearly enough for American workers.” The editorial adds:
There is a clear path forward. The proposal backed by Senate Republicans includes a number of critical elements that enjoy broad support, including a $350 billion rescue fund for small business and a plan to send cash, totaling $250 billion, to most households. But the urgency of the moment does not justify the egregious misuse of public resources.
If you are not a subscriber to this newsletter, you can subscribe here. You can also join me on Twitter (@DLeonhardt) and Facebook.If you are not a subscriber to this newsletter, you can subscribe here. You can also join me on Twitter (@DLeonhardt) and Facebook.
Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram.Follow The New York Times Opinion section on Facebook, Twitter (@NYTopinion) and Instagram.