Like all of America is doing right now, Congress must deal with the reality of the virus pandemic in creating an economic rescue package — and ignore the delusions and deceits of the Trump White House.
The current U.S. economic crisis, created and complicated by the virus pandemic, is nothing like the last two major economic disruptions that wounded the American economy. Congress cannot treat this like anything that’s happened before.
After the Sept. 11 attacks and Great Recession, American fears and institutional liquidity inflamed the crises. The COVID-19 pandemic has stoked plenty of fear, but this is completely different. A great deal of American commerce, by its very nature, can and will worsen the virus pandemic.
Currently Congress is looking at a bevy of ways to halt the mushrooming economic crisis with an equally massive $1.4 trillion rescue package.
Some of what’s being proposed makes no sense, and some deal breakers aren’t gaining enough ground yet.
Tens of thousands of companies must immediately furlough or lay off millions of workers because their businesses must remain closed to prevent the spread of the virus. Restaurant and service-industry workers cannot work from home.
While sending $1,000-or-more checks to all Americans might be comforting, it’s backward of what the problem is. It’s not that people with money aren’t willing to spend it on items that may help a stilled economy months from now. The crisis will come from millions of jobs evaporating almost instantly. Draining the public’s checkbook by sending $1,000 checks to millions of wealthy or comfortable Americans who aren’t desperate like the soon-to-be unemployed is obscene.
We agree with Democrats that the existing unemployment system is in place and can be most easily changed to most quickly get money to people who need it most. Democrats are right that the rescue bill must pay as much of real lost wages possible — not 60 percent — and the money must be made available immediately, not after a six-week “good-luck-with-that” period.
We agree with Republicans that the best way to stem the crisis is to provide fast cash loans to existing businesses that are able to change with this crisis to keep workers employed and businesses solvent. These businesses that are funded must be able to operate during the crises because employees are working from home, or worksites are able to prevent virus-transmission.
We agree with Democrats and Republicans that banks must be able to have access to federal cash to keep the system solid. But the risk bank shareholders face during this crisis is no more important than those any shareholder faces. Bank solvency must be underwritten, not shareholder profits and CEO salaries.
Despite the delusional fiction President Donald Trump and some others in the White House dangerously yammer about,the reality is grim. For at least several weeks, and possibly even months, travel and most personal contact must immediately end to prevent wildfire transmission of the virus, as has been witnessed in Italy and Iran.
Passenger airlines and airports must create catastrophic plans, not mitigations. Congress must look at ways to preserve the airline industry for when the crisis ends, not prop it up at the expense of millions of Americans who face daunting immediate peril because they cannot work, or their viable businesses cannot survive.
Most important, corporate and market stockholders must be at the bottom of the list for rescue efforts. If the nation learned anything from recent-past economic disasters, it’s that billions too easily fall into the hands of the rich or comfortable.
This has become a sticking point as the cruel and senseless mistakes of the 2008 bail-out debacle appear to be creeping into this rescue package. The answer there is simple. Split the bill and pass crucial main-street and individual rescue components of the measure and then return to hammer out guidelines to protect taxpayers from corporate-welfare fraud.
We ask each member of the Colorado congressional coalition to heed these bi-partisan touchstones as legislation is finalized in the next few hours and days.
With so much of every aspect of the current virus, there will be no second chances. Lawmakers must get this right the first time.