Sunday, August 9, 2020

A Reality Check: Trump's Covid Relief Exec Orders Aren't Worth An Ounce of Doggie Lickspittle


"Come on in, suckers!  I got great news for ya! I'm gonna revive unemployment bonus insurance and extend the moratorium on evictions! Howzzat for a stable genius!"

"We begin with a foundational premise, a stone-bound axiom learned the hardest of hard ways after three long years: Donald Trump does not care about you, or me, or anyone on this planet. Donald Trump cares only about Donald Trump, full stop, end of file. Do not let the triumphant-sounding weekend headlines about his executive orders fool you; those orders are made of soap bubbles. Yes, friends, it’s yet another scam.'"   - William Rivers Pitt, smirkingchimp.com

On Saturday, frustrated on no headway made by congress passing the HEROES Act - to help over 35 million jobless American workers- Trump took (executive) action on his own.  He fired off executive orders claiming to extend unemployment insurance, as well as defer the payroll tax until year's end, and reinstate a moratorium on evictions.  The latter to prevent up to 22 million getting tossed onto the streets in the middle of a pandemic.

 Knowing at some level it is congress that controls the power of the purse, the Dotard said he would use unspent funds from the CARES act to continue unemployment payments to millions of newly unemployed Americans at a rate of $400 per week – a $200 drop from the earlier $600 payment, (Which will cause at least ten million to now have to choose between rent and utilities - or food.)  Further, in reality his order only supplies $300 more per week, expecting the Covid near- bankrupted states to provide the rest.  This is sheer lunacy given the budget morass of the states.

He also plans to defer payroll tax through the end of 2020, though that will not help the millions of 'gig' workers affected during the pandemic.

Typical of the consummate con man he is, Trump claimed:

Congressional Democrats have stonewalled our efforts to extend  this relief,”

Actually, Trump and the Repukes have stonewalled in resisting spending the money needed to help over 30 million stay on their feet and not be sucked into a financial loss maelstrom.  Most of those millions are a cat's whisker from losing a home or domicile or not having enough food.  But the 'pukes keep insisting a  $600 bonus in unemployment insurance would incline too many to stay at home watching TV and chomping Twinkies-  instead of going back to work.  This despite several reports and research papers skewering that claptrap.

By contrast, the HEROES Act passed by House Democrats in May would have extended the enhanced $600 unemployment benefit through January, but the White House and Senate Republicans sought to change the formula for these benefits so that — in many cases — the weekly payment came to about $200 a week. Republicans eventually changed their offer and told Democrats they would agree to about $400 a week in benefits-  but only for 5-6 weeks - not to year's end.  The Dems had sense enough to grasp this was a joke, a non- starter, especially given the fact that by changing from $600 to less per week bonus, state job offices would take weeks - maybe months-  to have to reconfigure their systems.

Asked by a reporter why the benefits would be $400 instead of the previous $600, Trump responded: “This is the money they need, this is the money they want, this gives them a great incentive to go back to work.”

He added: “There was a difficulty with the 600 number because it really was a disincentive.”

But that's balderdash as I noted.  In fact, the money has nada to do with incentives to return to work. Americans already have that. What they don't have is enough money to meet all their financial obligations especially during renewed lockdowns in many areas as the virus returns.  Also, they need more jobs created to be able to FIND work, given there is currently an estimated 5 workers to each available  job.

Let's also note the Republican package failed to include an additional $1,200 direct payment to individuals, money for states to hold elections in November, or support for the beleagured US Postal Service, which  Nancy Pelosi said was “central to the life of our democracy” in an election year when many Americans will be voting by mail.

So the Dems had no choice but to hold out for a sane deal, which the Reepo atrocity was not.  Oh, and also it meant not allowing the Trust Act to go through - as part of the Repuke package, e.g.


When one looks beneath the 'hood' of these  Trump "exec orders"  (actually one real order and three 'memoranda')  one sees they are mostly shams.  How so?

Trump’s unilateral actions, if carried out, would provide only limited relief. The White House on Saturday authorized taking about $50 billion from the FEMA fund  (in the middle of hurricane season, mind you) to pay for unemployment benefits.  But that money will only last about five weeks before expiring,   Worse, it could well take 5-6 weeks to get the increase implemented .  This is given the states are expected to supply $100 of the $400, but they are running on financial fumes. Here in Colorado, for example, a $3 billion estimated budget shortfall exists because of the pandemic, As Gov. Jared Polis indicated  (Denver Post,  p. 8A) that means the state will only be able to provide the supplemental $100/week for 2-3 weeks at most.  Polis is hoping by the end of that temporary aid the White House will 'get real'  and  cooperate with Congress for real stimulus money.  Well, don't hold your breath, Guv.

Basically, Trump’s action on unemployment does not funnel additional money to the existing unemployment program, but instead creates a new program for “lost wages” that states will then have to set up from scratch (since they will  have to commit to the $100 additional support Trump does not). This could take up to two months, their monies are also running low for any added administrative purposes, and meanwhile people are without a pot to piss in.

Regarding the suspension of the payroll tax, another element in his orders, one Trump aide admitted (Denver Post, today, p. 12A):  "Yeah, it's really an interest -free loan that would have to be repaid, not a freebie."

As for the order to minimize evictions and foreclosures, it  does not reinstate the federal eviction moratorium that expired last month or fund the billions in assistance necessary to help people already behind on their rent.  Instead, it calls on the Department of Health and Human Services and the Centers for Disease Control and Prevention to “consider” whether it is necessary to temporarily halt evictions.

All a Trump sleight of hand, or in more blunt language another of his cons, a classic one. As Sen. Ron Wyden (D-Ore.) wrote on Twitter:

"This scheme is a classic Trump con: play-acting at leadership while robbing families of the support they need. This ‘plan’ fails to reinstate supercharged unemployment, and would throw already overburdened state programs into chaos, making it harder to get benefits out the door.”

More precisely, from the order lingo:

 The Treasury Department and the Department of Housing and Urban Development “shall identify” federal funds to provide temporary assistance to renters and homeowners “who, as a result of the financial hardships caused by COVID-19, are struggling to meet their monthly rental or mortgage obligations,”.

Jack Smalligan, a former official at the Office of Management and Budget and now a senior policy fellow at the Urban Institute, put it this way:

"The President cannot create new money with an executive order. These EOs simply show the limitations of the President’s legal authority,”

Even senior members of Trump’s cabal cast doubt on the feasibility of these blatant PR maneuvers.   Most believe it a 'hail Mary' play for Dotard Donnie to try to recover lost ground against Biden. This  since nothing else seems to work and Trump himself  doesn't relish doing much real work to stop the virus.  He'd rather tweet and watch Fox News. (Mary L. Trump in her new expose book says that is all he really likes to do.  The thought of actual work is a buzzkill.)

The sad fact is most of the media and likely too many citizens have been played by this political posturing move of desperation.   To make matters worse, the Trump administration recently decided against extending a food stamps waiver that allowed needy families to bypass certification, such as providing pay stubs. The move will now reduce the number of eligible families in the coming months, even as other stimulus measures expire.

One hopes that on November 3rd the many millions of seniors who still fancy Trump won't be taken in again. Especially given he's promised to cut the payroll tax permanently if he gets re-elected. Meaning Social Security's Trust Fund will run out of money even earlier than now forecast (2035).

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