Sunday, March 07, 2021

3.7.21: Has Everyone Gone Home A Little Unhappy? Good.

He's a Democrat and he's holding up the bill... How dare he? 

This is where we are that if a Senator, in this case Senator Joe Manchin (D-WV), who supports the $1.9 trillion Covid Relief bill sees something added late in the process that he doesn't like and calls it out, parts of people's brains begin to melt sending the neocortex into full retreat. 

Take a breath...

This shouldn't be a problem and it isn't. Yes, there is an urgency to passing this bill because employment benefits for millions are going to run out in a week, but Democrats should appreciate having a check like Senator Manchin in their party. Just as he explained today to Chuck Todd, he may not always heed Republican Senators' advice or counsel but he wants to hear what they have to say, Democrats should do the same with Mr. Manchin. Granted, the senator from West Virginia has incredible leverage to have his voice heard called 'the deciding vote' for the Democratic agenda. 

This is a good example of compromise (at least among Democrats) because the bill was passed in the Senate, but some things had to be left out effectively leaving all interlocutors a little disappointed. 

With that mind, not raising the minimum wage is something in which his column disagrees with Senator Manchin Senate and Senator Kyrsten Sinema (D-AZ). We get it that they are trying to thread the needle that raising the minimum wage isn't directly related to Covid relief and the parliamentarian gave them an out if they wanted, but this was a political needle so that conservative donors in their respective states don't come after them for it. Take that as you will.

As we've said in the past, raising the minimum wage will not be as hard on businesses as the rhetoric allows, but what it does do is giving a better baseline to reach and negotiate for better opportunity. The way we see it is that Republicans in Congress take the position that there shouldn't even be a minimum wage as most people make more than $15 an hour... Most people that they know.  Democrats on the other hand that there should be a minimum wage and that wage should be enough so that you're not working 40 hours per week and still living in poverty, as opposed to just the minimum that an employer is obligated to pay a worker. When considering that nuance, you're bound to end up with some 'no' votes. [Aside: as for the aforementioned, Senator Sinema and her 'no' vote on the minimum wage increase, appreciable sass but very poorly timed.]

As for the price tag of this Covid Relief bill - $1.9 trillion - it's an eye-opener for sure and at the top of the program Mr. Todd mentioned that we've thrown $6 trillion at the pandemic in a year, which definitely raises more than an eyebrow. When Danielle Pletka brought up this very fact, we were right on the same page. The cold fact is that there is no moving on from the pandemic unless we spend this money, and the question has to be asked of how the previous $4.1 trillion was spend - it wasn't all direct payments.

Also, it's interesting to note that when it comes to spending, Republicans and Democrats spend the same amounts - the big differences are to whom and the duration of time. Republicans when in power will give a $2 trillion tax cut to the richest one percent over the course of ten years whereas Democrats will give the same amount to the middle class and working poor immediately.

This bill is designed to do two things: 1) get the pandemic under control and get the population vaccinated and 2) create an economic 'reset' for all the millions of Americans who have suffered to make them somewhat whole again.

If you don't think that should be the goal of the government, just remember that one day you woke up and heard that Amazon effectively pays zero in federal income tax, a company that could pretty much fund the direct payments with one quarter's revenue. 

Yeah, that's what we thought - spend the money.


Panel: Yamiche Alcindor, PBS News Hour; Danielle Pletka, American Enterprise Institute; Jeh Johnson, fmr. Secretary Homeland Security; Jonathan Allen, NBC News


One more thing...
New York Governor Andrew Cuomo... should resign his office immediately. Even if you're a supporter of the governor think about it - the remainder of his current term will not be centered on the greater good of the state and will only serve to distract from governing. The credibility of these women's stories is unequivocal, but even with that aside, Governor Cuomo should not be getting his due process at the expense of the citizens of New York state. A true leader would understand this, the people of the state are more important than one man's political self preservation. (Seriously, who do you think we are? Senate Republicans?)

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