Opinion: $2 trillion in emergency relief is a lot to keep track of – Deseret News
Politicians seem to be in general agreement that the stimulus bill passed Friday was necessary, and for good reason. The current economic slowdown can be best described as a natural disaster. Millions of Americans are suffering unemployment or temporary displacements, not because of a bad economy, but because of a global pandemic.
The health care system is rapidly becoming burdened by the load of acute cases and the lack of supplies.
So relief is needed. We applaud Congress and the president for overcoming partisan differences and passing a negotiated package that will provide much-needed aid.
And yet an old adage remains true. Government cannot put its hands on the economy without creating winners and losers, nor can it dole out $2 trillion without the fear that it might not have enough controls in place.
Many Americans know they soon will be receiving checks in the mail, the size of which depends on their marital status, number of minor dependents and annual income. They may know that unemployment benefits are being extended for up to four months at a level that, combined with state benefits, may actually provide raises compared to what some were making prior to losing their jobs.
But do they know about the tax breaks that allow real estate investors to profit from depreciation? Do they know that the bill contains money and loan guarantees for many businesses affected by the virus, but not for cruise lines, which have been particularly hard hit?
Do they know that President Trump is considering making loans to the airline industry contingent on the federal government taking part ownership of those companies?
Remember a decade ago, when the government took an equity stake in General Motors in exchange for a bailout package? Anger over that was a factor in the rise of the tea party. Now something similar is being proposed by a Republican administration.
Boeings CEO told Fox Business last weekend he wouldnt accept those terms, and that the company would seek other options to help weather its financial challenges.
The bill contains $100 billion in much needed aid for health care providers, including a 20% increase in Medicare payments to help cover the cost of treating elderly patients. But its not clear how the money will be distributed so as to help rural hospitals that are struggling with especially thin profit margins.
Insurance companies get little help to deal with the growing number of people who need hospitalization. They do get penalties to keep them from price gouging for the coronavirus tests.
And those checks youre getting? It may be hard for the government to find people who typically dont owe anything in federal taxes. These tend to be low-income people the ones who might benefit most from extra money.
To be clear, most of the package is good. It provides a needed stimulus to the economy and necessary cash for many businesses and people hard-hit by a pandemic that must not be allowed to ruin what had been a robust and prosperous economy. It provides $10.5 billion to the military, including the National Guard, which will deploy up to 20,000 soldiers to help states deal with the virus.
Companies involved with telemedicine will get $200 million. The Postal Service will get a Treasury loan of $10 billion to help it pay bills and keep delivering. Businesses get money for keeping idle workers on the payroll.
The relief package, perhaps best described as an emergency care package, should help the country manage the tough days ahead, even as it should help the economy recover when the virus is gone.
That does not mean, however, that the bill should escape careful scrutiny, nor that it should escape close monitoring to ensure proper controls are in place or that hard-hit people and businesses are not left to suffer unduly. Even in a nation used to running large deficits, $2 trillion is a lot of money to carefully track.
Read the original:
Opinion: $2 trillion in emergency relief is a lot to keep track of - Deseret News