Sunday School 8/9/20: Extra Credit

Yesterday, in Sunday School, we heard from three of the key negotiators who were unable or unwilling to come up with another COVID-19 stimulus plan: House Speaker Nancy Pelosi, Treasury Secretary Steven Mnuchin, and Senate Minority Leader.

Also wandering around the lecture hall? Peter Navarro and Larry Kudlow, two cheerleaders for the Trump team. I refuse to cover Navarro anymore, and am on the kusp of kicking Kudlow to the kurb, but I bit the bullet one more time on him. But first, the Senate's #2 Dem, Dick Durbin, talked with Chuck Todd on MTP. Let's listen in.

Todd asked if there's any potential progress, including the possibility that the White House would "move to the middle" on anything. Durbin said that the Dems have already done that, coming down from $3.4T requested in the HEROES Act to around $2T now, so the Rs should do the same and come up to $2T from their original $1T. 

The legality of the president's executive orders, Durbin said, is a "moral dilemma."

We want unemployed people to receive benefits. We never wanted them cut off at all. So, I'm not going to suggest that we run out to court at this point... There'll be some challenges. This country club fix suggested by the president is going to be a cut in the unemployment benefits for 30 million Americans. It's either going to be cut from 600 to 400 or from 600 to zero, where it is right now, if the president's executive orders don't stand. You know, the bottom line is this: These people are not lazy people. We have five unemployed Americans for every available job.

And he said "this urban legend, which I say is an urban lie, about people sitting at home bingeing on Netflix and eating chocolate-covered cherries," simply is not happening He's talked with these folks, who he described as "desperate to get back to work." He noted that 70% of folks who have gone back to work have done so with wages less than unemployment was paying.

So, this notion that they're lazy and if they tried a little harder, they'd find jobs just doesn't work.

Durbin also pointed out that there are "20 Republican senators" who won't go for even a penny at this point, and that he sees a leadership gap there.

And we have Mitch McConnell, the Republican leader, who is not even attending negotiating sessions. He's stayed out. His chair is empty. Same thing with Kevin McCarthy, the House Republicans’ (leader).

Durbin argued that actually "doing something directly about the coronavirus" is more important than unemployment. 

...this notion that you're going to have the same instant results of testing that (the president) does with his White House visitors or Major League Baseball does overnight, that isn't the real world out here. The people are waiting in line for testing, and they're waiting for results from 5-12 days, which makes them almost pointless. That is a priority for us. Testing to deal with coronavirus is key to opening the economy and opening our schools.

That's the part that seems to be missing from what's being delivered, or considered: people want a way to safely return to work, to get kids back in school, to shop, to dine out - in effect, to really reopen the country.

Dana Bash tried her luck with Kudlow on CNN's SOTU. Here's how he explained the unemployment assistance deal, which requires states to pitch in 25% or $100 each week for all of the unemployed folks in their state, in order for the federal government to pay an additional $300.

For an extra $100, we will lever it up. We will pay three-quarters, and the states will pay 25%. And I think the way this is going to work out, we have additional funds that we will repurpose for this. This is an essential item. We have tried to get it through the Democratic House for, I don't know, two or three times. And it's going to be a form of economic assistance. Probably, you will get $800 total, federal and state. And if we get it going September 1, which is what the deadline looks like, that will probably give the work force an increase in wages. Basically, it's a wage increase after taxes of $1200.

Wait, maybe it's this:

Well, at a minimum, we will put in 300 bucks, and the states will continue with their 400 bucks. But I think all they have to do is put up an extra dollar, and we will be able to throw in the extra $100. So, it should a total -- it should be -- may not be in every case... because, as you know, we're talking averages.  Some states higher, some states lower. But, on average, Dana, it'll run to about $800. That's about a $1,200 wage increase.

Or, it could be this:

Well, we -- we will stand ready to repurpose if states put in a little bit more, is all it amounts to... Right now, that number is going to run around $700. I think they will get to $800. Some states can get above $800 with our federal help. And, again, the key point here is that it's a wage increase, Dana, of about $1,200 for the last four months of the year. That's a big pay hike. And not only does that reward the heroes who have been working. I think it's an incentive to get more people who want to come into the work force.

Let's do one more round, this time with both Bash's questions and Kudlow's answers.

DB: When do you think people will see their first check?

LK: I don't want to be specific, because you might hold me to it, as you should, but I think it's going to be in a couple of weeks, and I think it's going to come to about $1,200 per person. That's a huge wage increase. Listen...

DB: You keep saying $1,200 per person. Are you talking about in addition to the unemployment that they're already getting?

LK: Oh, no.

DB: Where does that number come from?

LK: That's the payroll -- I'm sorry. I beg your pardon. The $1,200 will come from the payroll tax deferral on top of this.

DB: OK. We're going to get to that. OK, all right, because this is -- there's a lot of numbers here, and it's a little confusing. 

 LK: Yes, I'm sorry. It should be...

DB: I want to get to payroll tax in a minute. Go ahead.

LK: It should be 800 bucks. I beg your pardon. It should be 800 bucks for the unemployment.

DB: $800 or $400?

LK: No, it should be $400 -- it should be $800.  If the states step up, we're prepared to match. That should be -- come out $400 federal, $400 states.

DB: OK. We will move on, because I think this is -- that's not what the president said, and it's a bit confusing. And I think the fact that it's not entirely known is very telling. 

I'll give you double secret extra credit if you can figure out what the heck he's talking about. And I'll throw in bonus points if you can tell me why they keep putting Kudlow in front of the cameras. And I'll relieve you of your next homework assignment if you do all of this while wearing your mask.

See you around the virtual campus.