To the editor:
Well, we’ve seen the face of one-party control and it’s not pretty.
On a strictly party-line vote the Democrats passed their coveted American Rescue Plan, played up as help for Americans impacted by COVID.
The plan, passed with zero consideration for amendments to cut out non-COVID expenses, will cost us $1.9 trillion(T), on the top of the $2.6T already acted on and not yet fully spent.
Of this $1.9T only $556 billion(B) can be remotely construed as COVID money (see March 10 Wall Street Journal chart and graph).
$360B to state and local governments when 21 states had more revenue in 2020 than in 2019 and big spender California has $19B budget surplus. And the ones who did come up short were largely those that shut down their economies as did New York, Illinois, and California. And the $360B will be allotted based on an unemployment formula that will (“surprise, surprise!) be slanted to favor the Dems states and cities.
Schools will get $176B, beginning in 2022. Where’s the COVID emergency there? And there’s about $60B left from the CARES act of last May that’s not used yet.
And to tie unemployment and schools, which group suffered most unemployment? Women, especially minority women. They were the predominant demographic of the hospitality and food service industry. They got shut down, lost their income and when their jobs reopened they couldn’t go back to work because schools were on remote “learning” and they had to watch the kids. So much for the party of women and minorities.
Expanded child care and earned income tax credits ate up another $143B.
And where does the $250B for transportation and miscellaneous fall under COVID relief?
$410B for “stimulus” checks? Why does everyone with income less than $75 thousand(K) get $1,400? Democrats say $15 per hour is a living wage, so send the $1,400 to those making less than $29,800 (40 hours x 52 weeks x $15 less $1,400).
At least they cut the $600 per week unemployment to $300 so a lot of people will be better off working, like before.
And were the union pension funds decimated by COVID? No, in fact they should be flush with the run-up in value of equities, pre-COVID and post lock-down. But that’s not good enough, the Plan allocated $86B extra to the Pension Guaranty Benefit Corporation (see March 15 Post-Crescent) so retired and union workers and future retirees won’t have to see cuts in generous benefits. A large chunk of this will end up with the Teamsters, a union with a long history of corruption and mismanagement.
The plan will definitely be inflationary, how much so is anyone’s guess. It’s all borrowed and printed money from the Federal Reserve and the Treasury who in turn borrow through the sale of bonds worldwide. At some point someone has to redeem those bonds. I hope my grandkids all have good jobs. If they don’t then Asia and the Middle East will own us.