Early in the year, the pandemic upended the American economy. Moving quickly, Congress was able to pass the CARES Act, which sent direct payments of $1,200 to most Americans while also offering financial assistance to many states and local governments.
The bill included a provision that increased the amount of money for those on unemployment. A moratorium on evictions ensured people could stay in their homes even if they were negatively impacted by the pandemic.
In short, the CARES Act was a lifeline in the early days of the pandemic when lockdown efforts were in full swing. However, following the CARES Act, little meaningful legislation was able to get through the Congressional gridlock that has defined recent politics.
Democrats have blamed Senate Majority Leader Mitch McConnell, while Republicans insist that Democrats are looking for too much spending.
Spending Hawks
Democrats have accused Republicans of pivoting to a policy of austerity ahead of Joe Biden’s inauguration in order to hobble the incoming Democratic president. In March, when Donald Trump’s chances at reelection looked rosier than later in the year, Republicans were quick to open the government’s coffers and cover COVID relief expenses.
However, as Trump’s chances grew slimmer, Republicans became more and more hesitant to spend any money on public programs.
Now, with Trump in his lame duck period and Democrats pushing for more relief, Republicans could be adopting a strategy that served them well in 2009 with Barrack Obama.
Then, Senate Republicans, still under the leadership of Mitch McConnell, adopted a stance of extreme opposition. Democratic pundits have held that McConnell’s strategy was to stonewall Obama and slow economic recovery from the 2008 financial crisis in order to hurt Obama in the 2010 midterms.
Needless to say, this strategy was successful: 2010 saw the Tea Party Movement boost the Republican party to massive gains in Congress.
Republicans Accuse Democrats of Irresponsible Spending
On the other hand, Republicans in Congress have accused Democrats of being irresponsible with federal funds. They have held that Democrats’ insistence on relief for state and local governments amounts to a bailout for smaller governments.
Further, Congressional Republicans feel as though increased COVID spending could disincentivize workers from returning to their jobs, slowing the economic recovery.
For his own part, Mitch McConnell maintains that any relief legislation will need to include a liability shield for businesses and schools.
This would protect them from lawsuits from people who fall ill while in those establishments. Democrats have opposed this, and, while there are some signs of a compromise, it is unclear whether Congress will be able to reach an agreement before the end of the year.
