No, There Is Not Growing Support For A Second Stimulus Payment
I hate to be the bearer of bad news, but here it is: there is no growing bipartisan consensus to issue a second stimulus check, whether a one-time payment or a monthly, recurring payment. Republicans are stymieing efforts and, given their control of the Senate and the White House, the concept is as good as moot without their backing. If anything, recentRepublican commentary has coalesced against a second round of direct payments.
Yes, Another Payment Would Be Incredibly Impactful
While the first round of stimulus payments - $1,200 for individuals, $2,400 for those filing jointly, and $500 for each qualifying dependent child - was crucial for many Americans, it wasn’t enough. A Bankrate survey found that 55% of respondents anticipated that economic impact payments would sustain them for less than three months. Another survey, conducted by SimplyWise in mid-April, not only reinforced this point, but also underscored the predicament many Americans are in; 63% responded that they would need another stimulus check within three months.
There Is A Lot Of Confusion About A Second Stimulus Check
Almost immediately following passage of the CARES Act, new proposals for additional direct aid to Americans started popping up. Most recently, there has been increasing Democratic support for a proposal that Congressmen Tim Ryan and Ro Khanna had put forward in mid-April, the Emergency Money for the People Act, to provide $2,000 monthly payments to qualifying Americans.
The operative word, however, is “Democratic.” Adding 10 Democratic co-sponsors to a Democrat-sponsored bill is not going to move the needle without support from the other side of the political aisle; it certainly doesn’t signal increased consensus for a second stimulus check. It is the equivalent of a husband thinking that new support from his ten best friends increases the likelihood of winning an argument with his spouse; or, in the political realm, the same as more people in California, a state that awards electoral votes on a winner-take-all basis, announcing in 2016 that they were voting for Hillary Clinton.
Republican Reality Check
Our equivocator in chief only added noise to the mix with his comments on the subject. Asked on April 6 if he would consider a second round of direct payments, Trump said, “we could very well do a second round of direct (payments),” adding that it “is absolutely under serious consideration.” Trump has since moved on to his new flavor of the week, payroll tax cuts, telling a Fox News virtual town hall on Sunday, “I want to see a payroll tax cut on both sides, a very strong one, because that’s going to really put people to work.” For what it’s worth, most mainstream economists, like Betsy Stevenson and Justin Wolfers, strongly disagree.
Trump’s initial remarks were followed by an April 8 Washington Post opinion piece by Republican Senator, Josh Hawley, which argued for covering 80 percent of wages for workers, up to the median national wage. This narrative, coupled with more recent off-hand comments by Kevin Hassett, a White House economic advisor, initially provided a few glimmers of hope for a second stimulus payment; however, these have proven to be exceptions rather than the norm.
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Republican Reality Check
Strong opposition to another round of direct payments has emerged in the past week as evidenced by biting comments from Republicans. Here is a sampling, sourced from Congressional news site, The Hill:
- Steve Scalise: In response to remarks by House Speaker, Nancy Pelosi, on monthly stimulus payments, Republican Representative, Steve Scalise said, “it’s incredibly tone-deaf of Speaker Pelosi to continue using this crisis to push these radical socialist ideas that have been consistently rejected. He continued, “what we should be focused on is responsibly implementing the relief packages we passed to get trillions of dollars directly into the hands of families and businesses so the American people have jobs and an economy to come back to when we finally reopen.”
- Paul Mitchell: Rep. Paul Mitchell also provided comments to The Hill: “We already have a universal basic income — it's called work. We also have [Social Security Disability Insurance] SSDI for people who are unable to work physically or due to disabilities. We have security if you're older, they've earned it.” He continued, “we have a variety of forms of support for people like unemployment compensation and public assistance for purely short-term assistance so I'm trying to understand exactly what [Pelosi] wants to do besides throw more money at people.”
- Jim Banks: Rep. Jim Banks accused Congressional Democrats of using the crisis "to turn America into a socialist country." He accused Congressional Democrats of trying to use the pandemic to restructure America.
- Matt Gaetz: Rep. Matt Gaetz continued the pile on: "The Speaker’s comments reaffirm that Republicans are the party of working Americans while Democrats prefer diminished productivity.”
- Lindsey Graham: Last, but certainly not least, Trump’s unabashed defender-in-chief, Senator Lindsey Graham, said he was hoping direct payments would not be included in the next round of coronvirus relief legislation: “The real stimulus that’s going to change the trajectory that we're on is going to be the economy, not government checks. So I doubt there will be another payment.”
The Evolving Focus Of Republicans And Democrats:
Republicans have started coalescing around a uniform set of talking points not only opposing direct stimulus payments, but also reframing the conversation around other topics, including a liability shield for companies. Senate Majority Leader Mitch McConnell, “who will control the shape of much of the next stimulus package, has called liability protections a must-have ‘red line’ for Republicans.”
Even Democrats, while not abandoning direct payments, have shifted focus to a laundry list of other relief priorities, including providing additional money to cash-strapped states and cities, expanding unemployment benefits, and food stamp funding. Pelosi tipped her hand about which of these is top of mind for her when drew a line in the sand saying, “there will not be a bill without state and local” assistance.
Does this mean another round of stimulus checks is off the table? No, but it does show that a second direct payment may not be at the forefront of the negotiating list. With so many competing priorities for Democrats, the question will be whether additional direct payments are predominant or a bargaining chip to secure other concessions. The more opposition emerges from Republicans, the more likely it is to be the latter. Sorry.
This article originally appeared on Forbes.
