As part of what is becoming near-daily press briefings on the coronavirus situation in the U.S., President Donald Trump and Treasury Secretary Steven Mnuchin addressed members of the media Tuesday afternoon regarding the American economy. The message is hopeful, but the details need triple-checking.
The president confirmed the administration is still exploring all of its options to help the American people in the midst of the epidemic. Proposals, including a possible payroll tax cut, remain on the table. While skeptics say the payroll tax would be too slow to help most people, the administration emphasized it is currently focused on working with Congress to rapidly take the kind of action that would deliver more money, more quickly, to Americans in need.
Mnuchin commented, “We are looking at sending checks to Americans immediately. ... Many companies have now shut down, whether it is bars or restaurants.” He continued, “Americans need cash now, and the president wants to get cash now. And I mean now, in the next two weeks.”
After the briefing, reporters asked about proposals floated by various senators, including Utah’s Sen. Mitt Romney, who suggested sending a $1,000 check to every American adult. Without saying how much money Americans could potentially expect to receive, Mnuchin did suggest the administration was considering amounts that may be “a little bit bigger than what’s in the press.”
Government clearly has a role to play in the midst of a pandemic. The caution, however, is that while speed is needed in addressing many of the challenges the country faces, deliberation should not be cast aside in the process. Congress and the administration must be careful that their rush to alleviate the suffering of some doesn’t create long-term suffering for many.
Congress and the administration must be careful that their rush to alleviate the suffering of some doesn’t create long-term suffering for many.
That suffering would most likely come in the form of future economic hardships. The expected cost of Trump’s stimulus package is $1 trillion. If targeted at the most vulnerable among us, that could be money well spent, but the current environment illustrates why failing to address the national debt during times of plenty can have a sizable effect on the ability of the U.S. to respond to a crisis.
With a fiscal house in disarray, a $23 trillion national debt and interest rates next to zero, the country has few levers left to pull that would stimulate the economy while providing a measured plan to recoup the expenditures. This limits programs that could foster a stronger economy, provide essential government functions and deliver needed services for the most vulnerable.
Congress should move swiftly. It should also read proposed legislation before having to cast a vote. Such is the lawmaker’s duty. It is also vital that members of both political parties have the opportunity to debate and amend any proposal. Voting on bills that have never been read with no chance to amend or improve them is where bad decisions regularly occur. Without open amendments and real debate, Congress will deliver another take-it-or-leave-it, fake-fight ending in what amounts to a false choice.
We encourage a full, honest and open process. If done in front of the American people, rather than in backrooms, Congress could prove that compassion and responsible spending are compatible principles.