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Mitt Romney Explains Biden’s Stimulus Bill Is a $1.9 Trillion Clunker

Summary:
Mitt Romney wrote an accurate Op-Ed for the WSJ explaining why Biden’s Stimulus Bill Is a .9 Trillion Clunker. Key Clunker PointsThe Congressional Budget Office’s recent analysis of the plan found that more than a third of the proposed funding—0 billion—wouldn’t be spent until 2022Sending out checks won’t get consumers back into restaurants, bars, salons, malls, hotels or airplanes.The bill is filled with bad policies and sloppy math. It calls for 0 billion for states and localities. Florida hasn’t even had to dip into its rainy-day fund. California has a multibillion-dollar surplus. Utah’s revenues rose by double digits. JP Morgan found that 21 states had revenue increases in 2020. Other states drew on rainy-day funds—which is what they are there for.Most local tax revenue comes

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Mitt Romney wrote an accurate Op-Ed for the WSJ explaining why Biden’s Stimulus Bill Is a $1.9 Trillion Clunker. 

Key Clunker Points

  • The Congressional Budget Office’s recent analysis of the plan found that more than a third of the proposed funding—$700 billion—wouldn’t be spent until 2022
  • Sending out checks won’t get consumers back into restaurants, bars, salons, malls, hotels or airplanes.
  • The bill is filled with bad policies and sloppy math. It calls for $350 billion for states and localities. Florida hasn’t even had to dip into its rainy-day fund. California has a multibillion-dollar surplus. Utah’s revenues rose by double digits. JP Morgan found that 21 states had revenue increases in 2020. Other states drew on rainy-day funds—which is what they are there for.
  • Most local tax revenue comes from property taxes, which are far less volatile than sales or income taxes. Sending out hundreds of billions of dollars to states and localities regardless of need is both wasteful and harmful. It would create incentives for the mismanagement that got some states into fiscal trouble in the first place.
  • The Biden stimulus calls for $170 billion for education yet has no realistic plan to reopen K-12 schools. Further, of the $80 billion Congress has already authorized for education, $68 billion hasn’t yet been used by schools and universities. 
  • Stunningly, the CBO says only 4% of the K-12 spending in the Biden bill would occur in 2021 and that some education and labor funds would remain unspent in 2029, after a potential Biden second term.

What Romney Does Support

  • Expanded Covid testing
  • Accelerate vaccine delivery and support health providers. 
  • Robust assistance for those who have been crushed financially by the pandemic, including by losing their jobs. 
  • Aid to students and parents to spend on tuition at schools that are open or on tutors, summer programs or home-school efforts. 

Romney noted that a group of Republican Senators proposed a $618 billion compromise measure that matched President Biden’s proposed health and vaccine funding, extended enhanced federal unemployment benefits, provided economic relief for those with the greatest need, and included nutrition funding, small-business assistance, and resources to get children safely back to school.

"We can’t let unreasonable demands by teachers unions keep schools closed that can safely reopen," said Romney.

Bingo on all accounts.

Kill the Bill

President Biden is using Covid as an excuse to shotgun spending and waste money. 

His real goal is to funnel money to liberal states that have serious policy errors that ought to be rectified. 

I suggest we kill this latest "Cash for Clunkers" fiasco.

For the Record

Mish

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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