Fresh economic stimulus for Americans uncertain as Congress is deadlocked

*Nearly 51 million unemployed consumers no longer get Washington’s extra $600 per week ─Report

*Democrats require Republicans to support spending with least $2 trillion for pandemic relief package, but Republicans have proposed a $1 trillion package

*Democrats are asking for ‘too much money’, says White House Economic Advisor

Isola Moses | ConsumerConnect

As the United States (US) Congress failed to reach a compromise on a fresh relief package as Coronavirus (COVID-19) stimulus for millions of American consumers in the past week, it was hoped the lawmakers would work something out by now.

But they have not, according to report.

The Senate has joined the House of Representatives on a month-long vacation after taking no action to help millions of consumers to cope with the economic impact of the pandemic.

About 51 million Americans are unemployed, and until July 31, 2020, many were getting an extra $600 a week from the Federal Government to supplement state benefits. That’s now gone, according to report.

It was learnt that aside from employees who have been laid off, many small business owners are also feeling the pinch.

In July, for instance, Yelp estimated that 55 percent of the businesses that closed would never reopen.

Prior to end of July, there was also a moratorium in place to prevent people from being evicted from their homes while they got back on their feet. That provision has also expired, report stated.

While the Congress appears to agree that Americans impacted by the disruptive Coronavirus need additional help, yet that’s as far as the agreement goes, stated the report.

By their own admission, Republicans and Democrats are extremely far apart in their effort at crafting an economic aid package for the consumers.

Meanwhile, Nancy Pelosi (D-Calif.), Speaker of the House of Representatives, says she doesn’t know when talks will resume.

Nonetheless, she disclosed that Democrats have a requirement: that Republicans agree to spend at least $2 trillion for the total package. The original Democratic aid bill passed by the House in March called for spending $3.5 trillion.

Republicans have proposed a $1 trillion package and have criticised the Democrats’ bill, accusing lawmakers on the other side of the aisle of loading it down with non-aid provisions.

Larry Kudlow, White House Economic Advisor told CNBC, that Democrats are asking for “too much money” and insisting on unrelated provisions, such as making it safer for people to vote during the pandemic, calling it part of “liberal, left wish lists” that won’t fly at the White House.

“So far, it’s a stalemate,” Kudlow said.

In connection with their disagreements over aid, report said that the two sides were also very far apart on basic things like food assistance.

Pelosi says Democrats are calling for more than $60 billion to provide food assistance, but claims a Republican counter-measure called for only $250,000.

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