Democrats block US bailout on first try

Democrats block US bailout on first try


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© Reuters
“We can and we should. The country demands it ”

More than $ 1 trillion is expected to cushion a dramatic slump in the US economy. But there are still disputes between the parties.

Negotiations for a corona virus stimulus package in the United States in height more than $ 1 trillion have stalled. The Democrats in the US Senate blocked this in the lead Republicans Package created on Sunday evening (local time) with a procedural vote.

Although both sides Negotiated the details of the package since Friday, there were still bigger differences. The republican and Treasury Secretary Steven Mnuchin had actually expected the stimulus package to be adopted on Monday.

Leading Senate Democrat Chuck Schumer criticized that the Republican submission provided too much aid to certain industries and too little support to workers, hospitals and states. However, he was confident that the differences could be resolved within the next 24 hours. “We can and we should. The country demands it, ”said Schumer. Republican majority leader Mitch McConnell accused the Democrats of pursuing party politics despite a nationwide crisis.

The Senate is expected to vote on the package again on Monday. A copy of the nearly 600-page draft available to the Reuters news agency shows that 10 billion will flow at airports, $ 20 billion in traffic, and about 1 billion at Amtrak, the United States’ long-distance rail transportation system. Up to $ 50 billion is planned for passenger airlines, and an additional $ 8 billion for the cargo area.

The proposal also provides for $ 17 billion for companies that are “vital to maintaining national security.” Up to $ 425 billion more is earmarked for loans to other companies affected by the pandemic, states and cities.

In any case, it will probably be the largest stimulus package in recent US history – also more expensive than the emergency programs that were launched as a result of the global financial crisis in 2008-2009.

Checks for most taxpayers

president Donald Trump was initially unimpressed by the delay. “Our stimulus package will go through. And it will be an enormous package, ”Trump said in the White House. After a vote in the Senate, the House of Representatives controlled by Democrats will also have to approve the package.

As part of the stimulus package, most taxpayers are said to be among others get a check for $ 1200, there should be an additional $ 500 per child. According to a proposal from the US Treasury Department, around $ 500 billion should be spent on such direct aid alone. The stimulus package is also intended to help small and medium-sized companies with loans.

In addition, around $ 100 billion should go to the health care sector and unemployment benefits should improve significantly in the face of layoffs. Loans are also said to exist for large companies such as the aviation group Boeing.

Finance Minister Mnuchin emphasized that quick action is now necessary to prevent an economic slump. “We need the money now,” said Mnuchin. The exact extent of the economic upheaval of the coronavirus pandemic is not yet foreseeable. However, many analysts now fear a dramatic slump in the second quarter and a recession all year round. Initial data also suggests a rapid rise in the unemployment rate in many states, given the initial restrictions.

Trump has already signaled that he is also ready for further stimulus packages if the current is not enough. The United States will vote in November and Trump is applying for re-election – a recession would be extremely inconvenient.

Congress has already approved two smaller packages totaling over $ 100 billion this month to mitigate the effects of the Covid 19 epidemic. There are now more than 30,000 known infections with the novel coronavirus Sars-CoV-2 in the United States. Around 400 people have died.

More: Why Europe is skeptical about Trump’s model of helicopter money

All current information and recommendations from the Ministry of Health can be found here.

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