Mitt Romney wrote an accurate Op-Ed for the WSJ explaining why Biden’s Stimulus Bill Is a $1.9 Trillion Clunker.
Key Clunker Points
- The Congressional Budget Office’s recent analysis of the plan found that more than a third of the proposed funding—$700 billion—wouldn’t be spent until 2022
- Sending out checks won’t get consumers back into restaurants, bars, salons, malls, hotels or airplanes.
- The bill is filled with bad policies and sloppy math. It calls for $350 billion for states and localities. Florida hasn’t even had to dip into its rainy-day fund. California has a multibillion-dollar surplus. Utah’s revenues rose by double digits. JP Morgan found that 21 states had revenue increases in 2020. Other states drew on rainy-day funds—which is what they are there for.
- Most local tax revenue comes from property taxes, which are far less volatile than sales or income taxes. Sending out hundreds of billions of dollars to states and localities regardless of need is both wasteful and harmful. It would create incentives for the mismanagement that got some states into fiscal trouble in the first place.
- The Biden stimulus calls for $170 billion for education yet has no realistic plan to reopen K-12 schools. Further, of the $80 billion Congress has already authorized for education, $68 billion hasn’t yet been used by schools and universities.
- Stunningly, the CBO says only 4% of the K-12 spending in the Biden bill would occur in 2021 and that some education and labor funds would remain unspent in 2029, after a potential Biden second term.
What Romney Does Support
- Expanded Covid testing
- Accelerate vaccine delivery and support health providers.
- Robust assistance for those who have been crushed financially by the pandemic, including by losing their jobs.
- Aid to students and parents to spend on tuition at schools that are open or on tutors, summer programs or home-school efforts.
Romney noted that a group of Republican Senators proposed a $618 billion compromise measure that matched President Biden’s proposed health and vaccine funding, extended enhanced federal unemployment benefits, provided economic relief for those with the greatest need, and included nutrition funding, small-business assistance, and resources to get children safely back to school.
“We can’t let unreasonable demands by teachers unions keep schools closed that can safely reopen,” said Romney.
Bingo on all accounts.
Kill the Bill
President Biden is using Covid as an excuse to shotgun spending and waste money.
His real goal is to funnel money to liberal states that have serious policy errors that ought to be rectified.
I suggest we kill this latest “Cash for Clunkers” fiasco.
For the Record
I did vote for Trump in 2016
But as a Libertarian I could no longer take his tariffs, sanctions, belittling people, massive budget proposals, military spending, weapons to Saudi Arabia, and warmongering against Iran.
— Mike “Mish” Shedlock (@MishGEA) February 24, 2021
Mish
I’ve never liked Romney, the quintessential corporatist warmonger oligarch. However, his take on this is completely reasonable. Far better than the other crap that has more than a snowball’s chance in hell of passing, anyway. Kudos to Mish and some of the commentariat here who can see past both the R or D and the person’s name and just evaluate what’s being said.
I do not take anything seriously said by Romney, the liberal wing of the GOP
Romney mainly hated Trump with a passion. I assume it’s because he lost while Trump won.
Romney was always a loser, 90s Democrats are more conservative than today’s GOP. That’s telling how extreme Democrats have become.
it is simply replacing lost demand due to the lockdowns due to Corona Virus. if you did not notice, the economy contracted 2.50% is 2020, and the economy has 10 million fewer jobs than at the beginning of the pandemic. the economy does not self-heal. there has been never a situation in which an economy healed by itself.
Oh those poor Republicans (insurrectionists). They can go GFT.
Its all a game. Republicans cut taxes and then complain we cant afford this or that. Dems add programs. Both put us in debt. Everyone complains when someone else is getting a govment hand out. I just want tax money spent wisely but thats never gonna happen.
that is not true , Clinton had fiscal surpluses from 1996-2001 , that ended when Bush 43 negligently allowed the 09/11 attack to happen; fought the failed Iraq war, fought the Afghan war with out end and without paying. then we had the rise and collapse of the housing bubble which led to a 10 % fiscal deficits in 2009, and then BHO lowered them.
The surpluses were a mirage of accounting gimmickry. All the years Clinton was in office, the national debt went up. Although the rise in 2000, because of capital gains from the stock market, was small compared to other presidents.
Who believes in the Traitor of Republican Party, Mitt R.?
Who would listen yo the TRAITOR of Republican Party, Mitt?
When it’s what the other guy wants its waste. When its what you want its investment
when do I get my check??
The check is in the mail.
Romney is an amalgam of all that is bad in the Republican Party. Anything he says is not worth reading.
“Calling people you don’t agree with as in a cult is dumb.”
Strawman. It has nothing to do with disagreement and everything to do with your blind allegiance to a demonstrably evil person.
I see you have a Manichean view of politics. No sense arguing with someone who is blind to nuance.
And it will pass nothing the Repubs can do. This is JB using his bringing together with bipartisanship BS. I love this country!
There’s no chance the republican proposal passes. The whole point of the covid relief bill is the added pork. The covid part is just a cover for what they really want.
Sounds like Romney wants a covid relief bill to focus on Covid. Novel idea.
Personally I think some of the Democratic agenda doesn’t make a whole lot of sense unless you look at their bigger picture which is delivering for the progressive wing of the party on some items. Aid to state and local economies can be justified on the employment side. It seems Ok to provide funds for airlines and farmers but not the governments. All those shut airlines and restaurants aren’t paying taxes. State an local government’s don’t have the luxury of printing money and running deficits like the Federal government. But items like the increase in minimum wage just don’t belong
“Sounds like Romney wants a covid relief bill to focus on Covid. Novel idea.”
Made me smile.
As long as each member of my family of 4 (including as promised my two dependent college-age kids) receives $1400 AND PPP is re-funded I don’t care what else gets passed.
Surprise, surprise. Too bad so many people had TDS to realize what was under the hood with Biden-duh.