Republicans point to unspent stimulus funds to kill huge new bill

Top Republicans are now pointing to nearly one trillion dollars in unspent funds from earlier stimulus and COVID relief bills as a reason why President Joe Biden’s $1.9 trillion proposal should not be passed, as Democrats are currently trying to do using budget reconciliation to bypass the need for Republican votes. 

“It is estimated that approximately $1 trillion in existing COVID-19 funding has yet to be spent,” said top Republican on the House Budget Committee Rep. Jason Smith (MO).

“Before President Biden and congressional Democrats try to pass trillions more in spending, the American people need, at the very least, a thorough and accurate accounting of the trillions of dollars already approved,” Smith said.

Not only has nearly a quarter of the money allocated to COVID relief not been spent on that relief, but the economy is already in the process of strongly recovering and may not need another large stimulus to continue its upswing, Republicans argue.

Economy improving

Large states that have been mostly locked down since shutdowns began in March 2020 announced reopening plans in January, including New York and California. These reopenings have led to a rapid uptick in employment and revenue to reopening businesses.

Republicans want a much smaller stimulus package of about $600 billion. They argue that another huge stimulus will hurt the economy in the long term when the deficit needs to be repaid.

The Congressional Budget Office has forecast that the economy will return to pre-pandemic levels of growth by the middle of 2021, even without any further stimulus payments, the New York Times reported.

In other words, if we add another $1.9 trillion in stimulus to our debt, it won’t really help the economy much, anyway.

Debt causes inflation

Republicans understand that such a huge level of debt will have adverse consequences one or a few years down the road. A huge debt load causes inflation, so that salaries, investments and dividends will be worth less and all products and services will cost more.

That means food, housing, gas, heating oil, clothing, and all the things people need to live their daily lives will cost more, but their salaries will not increase.

In addition, a heavy debt load can impact the willingness of lenders to give us more money, which could eventually bring the whole system crashing down if things get too dire.

Of course, Democrats will just use the situation to call Republicans heartless and claim they don’t care about people’s difficulties, even though in reality Republicans just want people to keep having what they need and preserve the system.

 

 

 

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17 Responses

  1. First of all the Trump economy was doing great coming back after the left’s covid scare. How can you say it is getting better, when biden destroyed thousands of jobs in his first week? Republicans, you need to do more than find extra money, you need to stop the anti-American agenda. It’s the least you can do for the American people.

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  3. America will not exist much longer while it has corrupt congress that doesn’t care for Americans and never have they need to drain the swamp get a new congress and president we all know this election was rigged none of America money should be used for planned parenthood or go overseas

  4. The Hypocrats have to continue to increase our dept in order to destroy our Republic, straddle the economy with higher prices for goods and make the people more dependent on THEIR government.

      1. Absolutely they do at their discretion
        Sad but true, we have lost our right to speak at all form of media, this and all are a pos!
        Patriot 🇺🇸

  5. this is what happens when you allow an election to be stolen, hope all you supporters of this fake President will still be tickled when you have to bow to the real rulers of America now the demonrats and Biden live to do China’s bidding.

  6. Democrats dont give a rats rear end what happens to the country as long as they can buy votes (ie stimulus), blame republicans (everything that happens) and keep the sychophantic media reporting the lies they spew (anything that comes out of the biden pelosi schumer pie hole). Time will come when these tools are relegated to the dung heap of life and it cant come soon enough. God save this country and GOD BLESS AMERICA

  7. Democrats don’t care there’s still a trillion dollars left over. As a matter of fact they knew it was there and still are pushing for more in order to send billions of it to their democrat cohorts in cities and states they’ve ran straight into the ground through social justice issues and unnecessary and extremely high pension funds they’ve been bilking for several years!!!!! Unfortunately those who elected the democrats to office are too ignorant to know any better and republicans and their supporters are in the minority and aren’t going to be able to stop the rampant corruption.

    1. The fact is that the Republicans just go along to get along, when have they ever stayed on a balanced budget? The Elites in Washington some elected some appointed despise hard working , God Fearing Americans! Troops and Fence are still in place because they fear us. Humm, I thought fences didn’t work?

  8. Caused by Polarized Beliefs, different moral violations, the moral and emotional language used to galvanize one side is directly antagonizing the other. It’s the infamous “Us verses Them” syndrome.
    This is what ALL of us have put into Power, immature Childish Grown Ups, whom have either forgotten or never learned how to compromise in a bipartisan decent way.
    Five suggested solutions, Intergroup contact, Perspective taking, Superordinate goals, Proportional voting, Voting for policies, not for parties. Look them up Politicians as they are “The Better Angels of Our Nature”.

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