No agreement could be reached in the US Congress, now Donald Trump has unceremoniously given unemployed Americans more money by way of an order. The Democrats are outraged.
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More money for the unemployed, fewer evictions for insolvent tenants and fewer social security contributions: these are the parts of a corona stimulus package that the US President has Donald Trump ordered by order on Saturday, the day after negotiations in the US Congress failed. It was almost certain, however, that there would soon be lawsuits against Trump’s political solo effort.
“A lot of money that has not yet been spent”
In the opinion of critics, parts of his rulings are questionable, because all measures that require new financial resources require the approval of Congress. There Trump’s Republicans would have to rely on a compromise with the Democrats.
Trump now wants to get around the problem by simply reallocating existing funds, partly from previous economic stimulus packages. “We have a lot of money that has not yet been spent,” said Trump. However, it was not immediately clear how much the measures Trump announced would cost and whether there would actually be enough funds available.
The President of the House of Representatives, the Democrat Nancy Pelosi, spoke in an initial reaction of “modest announcements” by the President. Trump “still does not understand the seriousness or urgency of the economic and health crisis facing working class families,” Pelosi tweeted. “These decisions do not really help families,” said Pelosis and her colleague Chuck Schumer in a joint statement. Both appealed to the Republicans to return to the negotiating table.
Trump expressed confidence that his orders could be implemented despite likely pending lawsuits. “You won’t win,” he said, referring to threatened lawsuits.
It is about families in the face of Corona-PandemieTrump told journalists at his golf club in New Jersey that it was not their fault. He also promised voters further tax cuts if he won the November 3rd election. With regard to the regulation to suspend certain social security contributions until the end of the year, Trump promised: “If I win … I will extend it beyond the end of the year and then abolish the tax.”
The Democrats accuse Trump of using the tax cuts only for the election campaign. They argue that it does not benefit the unemployed, who are most in need of help. To what extent this stance could harm the Democrats in the election campaign is still unclear. Some voters may see them as blocking important government aid. But even with Trump’s Republicans there is resistance to the plans because the tax cuts could significantly increase the deficit.
Most of the attention will initially be directed to the additional unemployment benefits ordered by Trump until the end of the year, amounting to $ 400 per week each. Millions of Americans would benefit from this. A comparable scheme that the unemployed because of Corona-Krise an additional 600 US dollars per week, expired at the end of July without replacement because the two major parties could not agree on a follow-up arrangement.
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About a quarter of the funds required for the new unemployment benefits should come from the coffers of the states, as Trump explained. The states, however, are likely to run a storm, especially as they are as a result of the pandemic already have to cope with significantly lower income. Among the orders that Trump signed was aid for Americans who are in debt because of their studies. In addition, certain evictions should be prevented if possible.
In the negotiations for an economic stimulus package on Friday, the Democrats presented a compromise proposal worth around two trillion dollars (1.7 trillion euros). Apparently, the Republicans did not want to go beyond their proposed $ 1 trillion package. The talks failed and parliament said goodbye to the summer recess.
Nancy Pelosi, Speaker of the House: It’s about trillions of dollars. But Democrats and Republicans cannot agree. (Source: Michael Brochstein / ZUMA Wire / dpa)
The Democrats wanted to see the $ 600-a-week temporary unemployment benefit increase approved in March extended until the end of the year. They are also calling for a temporary suspension of evictions, help for tenants and more funding for states, communities and schools. The Democrats had already decided on the new stimulus package they are striving for, amounting to around three trillion dollars, in the House of Representatives at the end of May.
The Republicans in the Senate didn’t even want to talk about it until the end of July. The Republican Majority Leader, Mitch McConnell, in turn accused the Democrats of blocking the necessary aid package. He supported Trump’s recent move to “look into the possibilities” of helping the Americans.
The US economy is stuck as a result of Coronavirus-Pandemic in a serious crisis. The unemployment rate is a good ten percent, which is historically very high for the United States. Experts also fear that millions of tenants will soon face eviction because they will no longer be able to pay their rent after losing their jobs.