Recovery plan in the United States: umpteenth volte-face of the White House
Failing to see validated its big recovery plan, the White House carried out yet another about-face Sunday, this time urging Congress to vote a mini-plan intended to help urgently SMEs in difficulty.
Nearly 11 million Americans are unemployed, 25 million have seen their incomes plummet, while many SMEs face cash flow problems and large companies have started to lay off massively. But no new massive recovery plan has yet been validated at the national level.
Failing to see its global aid proposal validated, the White House on Sunday carried out yet another about-face on this subject and this time urges Congress to vote a mini-plan intended to urgently help SMEs in difficulty. This envelope would be reserved for companies, in particular SMEs, facing declining revenues while discussions continue on more aid.
In a letter to Congress, White House Chief of Staff Mark Meadows and Treasury Secretary Steven Mnuchin urge parliamentarians to pass a law that would allow the Trump administration to redirect some $ 130 billion not yet used from the previous support plan called PPP (Paycheck Protection Program).
Unlikely that this plan will be accepted
“The time has come to come together and immediately pass a law that allows us to spend unused funds from the Small Business Assistance Program, while we continue to work together on a larger aid package. The all-or-nothing approach is not an acceptable response to the American people, ”explain Mnuchin and Meadows.
With about three weeks of the November 3 elections, it is unlikely that this request will be accepted by the Democrats: their leader, Nancy Pelosi, who is negotiating with the administration, has already rejected any idea of targeted measures, saying she wants economic support large scale more likely, according to her, to give a boost to the activity.
$ 1.8 trillion plan rejected
A large-scale plan has indeed been proposed by the White House. Friday, after a week of about-face and procrastination unwelcome by the financial markets, the Trump administration finally raised to $ 1.8 trillion (against 1.5 trillion previously) its new envelope of support for the American economy, hoping strike a deal with the Democrats.
But Nancy Pelosi, deploring “one step forward, two steps back”, considered this proposal insufficient. The Democrats want, among other things, aid to households, businesses and states for a total amount of 2,200 billion dollars.
The White House proposal was also rejected by several Republican senators who deem it too generous. They oppose aid that would go to local communities, and more particularly to states severely affected by the pandemic, many of which are governed by Democrats. Mitch McConnell, their leader, warned that a deal was “unlikely in the next three weeks.”
An electoral issue
“Is the aid plan dead?” “, We asked Larry Kudlow, the economic adviser of the White House, Sunday on the CNN channel. “I don’t think that’s the case,” he replied, adding that, “I think if an agreement could be reached (with the Democrats), the Republicans would do with”.
The new plan to support the economy has become a major issue for the Republican camp: Democrat Joe Biden is now nearly ten points ahead in the national poll average and has also reinforced his advantage in voting intentions in the level of the decisive states for the election.