Democrats are poised to pass what the White House has declared “the most progressive bill in history,” where only 9% of the nearly $2 trillion in spending is dedicated to coronavirus relief and the other 91% goes to money for the arts, humanities, transportation, abortion, loan forgiveness for students and “socially disadvantaged farmers,” whatever that means.
There’s little doubt House Speaker Nancy Pelosi feels good about the federal stimulus package, for it will erase the majority of San Francisco’s projected $650 million budget deficit over the next two years, saving her city from having to make fiscally responsible decisions.
The $350 billion allocated for state and local governments — with California carving out $42.2 billion of the total sum — equates a blue-state bailout. States like Florida, which took early steps to reopen their economies, have lower unemployment rates compared to the national average. Of the 10 states with the highest unemployment rates, eight are run by Democrats, and many are still locked down. So basically, Floridians are on the hook to pay for California’s mistakes.
What’s even more corrosive is state revenues across the country have been increasing. The Wall Street Journal reported California’s revenue for this fiscal year is almost $10 billion above projections. Blue states want these bailouts not because they need them for coronavirus relief, but to help pay for their budget deficits, fueled by their mismanaged pension systems.
To dub this bill as “coronavirus relief” is erroneous — it’s mostly pork. There’s $270 million dedicated to the National Endowment for the Arts and National Endowment for the Humanities, $1.5 billion for Amtrak, $20 million to update the Affordable Care Act exchange technology and $35.5 billion for increased Affordable Care Act subsidies.
And to what actually is dedicated for relief, more than one-third of that money won’t be spent this year. About $700 billion is allocated to be spent between 2022 and 2031, including 95% of the school reopening money. So much for an urgent need.
Democrats are fully owning this bill — touting poll numbers that say the majority of Americans are in favor of it. Yes, the majority of Americans are looking forward to their $1.400 payouts — but think of it this way — if all of what Congress is spending went directly into their pockets, every American man, woman and child would be issued a nearly $6,000 check.
Eventually, this fiscal irresponsibility will catch up to us — our children’s children will be on the hook for paying for this pork.
Lawmakers simply cannot keep sending out free money without any costs in terms of inflation and high interest rates. The Federal Reserve says don’t worry about it, but many economists don’t have a clue about what’s coming next.
As Bloomberg reports: “Democrats are closing their eyes and throwing the dice. Congress is passing President Joe Biden’s $1.9 trillion pandemic relief bill with shockingly little information about whether the U.S. economy can safely absorb it.”
So yeah, Democrats can own this disastrous bill.