Millions of Americans Are Unemployed. McCarthy Wants Them To Stay That Way
Four days after House Republicans voted in lockstep to block COVID-19 relief aid backed by economists from both sides of the aisle, House Minority Leader Kevin McCarthy admitted that House Republicans are counting on a bad economy to help them politically.
Punchbowl Social reports that McCarthy wants to “lay a subpar job-creation situation” at Democrats feet.
Despite Trump’s Chairman of the Council of Economic Advisors telling CNN he “absolutely” supports the framework of President Biden’s stimulus plan, House Republicans unanimously put partisanship over American jobs and voted against advancing a plan that Moody’s Analytics found will create 10 million additional American jobs between 2021 and 2022.
A survey from the Federal Reserve found that 9 million small business owners fear their businesses won’t survive the pandemic without more government relief – relief House Republicans are fighting to block.
Millions of Americans are unemployed. House Republicans want them to stay that way.
So much for McCarthy’s claim of being the “American Workers’ Party.”
Experts Agree That Congress Needs to “Act Big” on COVID Relief
- Treasury Secretary Janet Yellen: “Economists don’t always agree, but I think there is a consensus now. Without further action, we risk a longer, more painful recession now – and long-term scarring of the economy later. … Right now, with interest rates at historic lows, the smartest thing we can do is act big. In the long run, the benefits will far outweigh the costs.” (Testimony in her confirmation hearing in the Senate Finance Committee, 1/19/21)
- Mark Zandi, Chief Economist, Moody’s Analytics: “It’s better to err on the side of too much rather than too little. Interest rates are at zero, inflation is low, unemployment is high. You don’t need a textbook to know this is when you push on the fiscal accelerator.” [NYT, 1/30/21]
- Former Top Trump Economic Adviser Kevin Hassett: CNN Business reports, “Former Trump top economic adviser Kevin Hassett broadly supports President Joe Biden’s $1.9 billion rescue package as a way to keep the coronavirus-ravaged economy afloat. … ‘There are so many businesses treading water, barely hanging on. Now they are getting hit by another shock [from the pandemic],’ said Hassett. ‘You could end up in a negative spiral for the economy.’” [CNN Business, 1/22/21]
- According to Moody’s, if the package were enacted in full by March, the analysis projects that GDP would jump by almost 8 percent in 2021 and an additional 4 percent in 2022. At this pace of growth, the economy would create 7.5 million jobs in 2021 (December to December) and an additional 2.5 million jobs in 2022 – resulting in full employment by the fall of 2022 – a full year sooner than without this package. [Moody’s Analytics, 1/15/21]