Stephen Moore says the Senate Republicans got most of the newest stimulus bill right but believes that it contains a “fundamental flaw” and President Trump shouldn’t sign it.
Moore, a member of President Trump’s economic recovery task force and an economist at FreedomWorks, says the plan put forward by Senate Majority Leader Mitch McConnell “isn’t half bad” and will help get the country back on track. He also says that we can “take solace in the fact that the price tag is “only” $1 trillion” compared to the HEROES ACT passed by Democrats and Speaker Nancy Pelosi that totalled a whopping $3 trillion.
Moore provided his thoughts on whether or not he sees a benefit from what he calls the “major planks” of the plan.
Another Round of $1,200 Stimulus Checks
Moore gives a “thumbs down” to this aspect of the bill. He believes it is counterproductive and rewards inactivity. He says “Dropping free money into people’s pockets is no road to prosperity. This isn’t a stimulus, it is a redistribution of money from producers to non-producers.”
Additional Funds For The Paycheck Protection Program
Moore says “let’s wait and see” how this plays out. It’s important that the government be repaid for these loans, and they don’t become forgivable grants, says Moore.
Unemployment benefits are reduced to $200 per week until states create their own plans that pay up to 70% of previous wages.
Letting the $600 per week unemployment benefits expire was “essential” says Moore, who gives this initiative a “thumbs up.” He says the CBO (Congressional Budget Office) found that five out of six workers were making more money staying unemployed than going back to work. He also points to a study by Casey Mulligan at the University of Chicago that found the additional unemployment benefits would reduce employment by almost 10 million jobs by the end of the year. Moore says “There is NO jobs recovery if this policy continues. No backing down.”
Liability Protection for Schools, Businesses, Churches, etc. As They Reopen
“Thumbs Up” says Moore. He says businesses that reopen need to be protected from frivolous lawsuits should someone get sick. Without liability protection, the Committee to Unleash Prosperity found that at least 500,000 jobs would be lost.
$100 Billion To Help Schools and Universities Reopen
Moore gives this a solid “thumbs down.” He says at the moment, most public schools have announced that they won’t be reopening in the fall, so what do they need the money for? “Any federal funding for schools this year and next should only be for schools that are open FULLTIME.”
Education Freedom Grants To Cover Scholarships For Private Schools and Payments To Parents For Homeschooling
“I feel like I’ve died and gone to heaven,” says Moore. He gives this a resounding “thumbs up.” He adds, “This will give potentially millions of parents, mostly with low incomes, a chance to send their kids to good schools this fall. Distance learning is a failure for at least half of the bottom half of children; they need in-class instruction.”
100% Deductibility For Business Meals and Entertainment
This gets a solid “thumbs down” from Moore. “What would a stimulus bill be without a few special interest giveaways to the corporate lobbyists?” he asks.
While Moore’s opinion of the bill is that they got it half right, he does point out what he believes is a fundamental flaw: a lack of a payroll tax cut through the rest of the year. He says it would help “150 million workers and nearly 30 million small businesses and self-employed business owners.”
Moore adds, “This would create up to 3 million jobs over the next six months and give a pay raise of 7.5 percent for every nurse, teacher, home care worker, construction worker, and police officer in America – the heroes of our economy.”
He worries that the bill that McConnell presented yesterday won’t survive negotiations with Democrats.
“All in all, a good bill. The problem is it will get much worse as Trump and McConnell begin to negotiate with Pelosi. There is not one single feature of the Pelosi bill that is positive for the economy,” says Moore.
His final thought is for the person who will eventually sign the bill into law.
“President Trump should not sign any final product without the payroll tax cut,” says Moore.