Tuesday, May 26, 2020

Last Call For Austerity Hysteria, Con't

Mitch McConnell has realized that all he has to do in order to achieve his dream of forcing states to permanently eliminate trillions in social programs is to sit back and do nothing as the Trump Depression ravages them.

Senate Majority Leader Mitch McConnell said Tuesday he favors some targeted aid to states and local governments, but the next round of federal pandemic relief money can’t be used for dealing with “pre-existing” fiscal conditions.
He also denied under questioning that he supported states and local governments filing for bankruptcy protection if they find themselves underwater with debt.

McConnell said states can’t declare bankruptcy, but it is “an option” for cities, though he recalled mentioning that approach only as a possibility, not as a recommendation for navigating out of financial woes brought on by the coronavirus.

McConnell: Let states 'use the bankruptcy route' instead of giving federal 'blank check'

The remarks came during a brief availability at Norton Healthcare’s Brownsboro campus in eastern Jefferson County.

McConnell said there will be another “plug” of funding from the federal government to aid businesses and others hit hard by the pandemic, but “it won’t be another” $3 trillion, as a recent House bill calls for.

“That ain’t going to happen,” he said at one point.
As the country gradually begins to reopen, the economic toll brought on by shuttering businesses and sending workers home to shelter in place is just beginning to be tallied, and many states and cities, including Kentucky and Metro Louisville, have multimillion-dollar shortfalls in sales and payroll taxes.

McConnell said he thinks it’s crucial to include “narrowly crafted” liability reform to protect businesses from an “avalanche of lawsuits” that could arise from reopenings.

"The only way to rescue this economy is to get back to normal" even though "we may need one more plug" of pandemic relief.

Mitch continues to hold out the "possibility" of a phase 4 bill so he doesn't give away the game, but the reality remains that there is no help is coming for local and state governments.


Not even for Kentucky.

We're on our own.

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