Mitt Romney Explains Biden’s Stimulus Bill Is a $1.9 Trillion Clunker

Mish

President Biden is using Covid as an excuse to foster more liberal spending waste. Let's investigate Biden's proposal vs what should be done.

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

Mish

Comments (71)
No. 1-17
4IronFan
4IronFan

NY, Washington & Illinois, first COVID hit states experienced extreme loss of revenue via sales, property, unemployment and other increased welfare requirements. They should receive significant federal funds. I agree those states that did not experience shortfalls shouldn’t receive funding but that’s not how the Senate previously chose to allocate state funding.

Quanta
Quanta

At least the money will go to the people regardless of the waste. All the GOP tax cuts were spent on CEO salaries and stock buybacks. And don't even get me started on the Iraq War.

Sechel
Sechel

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

Quanta
Quanta

The numbers for schools are laughable. $80Billion. How much money do YOU PEOPLE think it takes to run American schools? How about 5 Trillion dollars for schools and nothing else?
Old timers got their education for free , and now complain that millennials can't make ends meet because of financializations of the education industry.
YES - the states governments should run the schools, not private interests.

Quanta
Quanta

"The package includes $1,400 direct payments to most Americans, a $400 per week jobless benefit supplement and an extension of programs making millions more Americans eligible for unemployment insurance. It also puts $20 billion into Covid-19 vaccinations, $50 billion into testing, and $350 billion into state, local and tribal government relief.

The plan as of now would hike the federal minimum wage to $15 an hour by 2025. "

Makes sense to me. I don't have a problem with anything here.

KidHorn
KidHorn

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.

amigator
amigator

And it will pass nothing the Repubs can do. This is JB using his bringing together with bipartisanship BS. I love this country!

Quanta
Quanta

Trump and the GOP could have used their power to help regular Americans in 2020, and had they done so, they would have won the election. Instead they spent most of 2020 denying science, and didn't do much of anything.
Now Joe & Dems are going to get this major relief through, and get all the credit for it. Good job and way to go JB & Dems.
GOP losers had their chance in 2020, and didn't take advantage of it. How dumb do you have to be, to NOT use a crisis to your political advantage when you're in power?

Doug78
Doug78

Romney is an amalgam of all that is bad in the Republican Party. Anything he says is not worth reading.

numike
numike

when do I get my check??

Sechel
Sechel

When it's what the other guy wants its waste. When its what you want its investment

PecuniaNonOlet
PecuniaNonOlet

Another big box retailer bites the dust. Stimulus or no, retail, like boomers, are becoming extinct over the next decade. Long live Amazon!

Rbm
Rbm

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.

Casual_Observer
Casual_Observer

Oh those poor Republicans (insurrectionists). They can go GFT.

oee
oee

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.

JoeJohnson
JoeJohnson

I do not take anything seriously said by Romney, the liberal wing of the GOP

purple squish
purple squish

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.


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