The American Rescue Act (ARA) is finally law. The affects are already being felt by folks desperately in need of help. The nationwide popularity of this law is stunning: 76% of Americans are in favor of the act, including over 90% of Democrats, 70% of Independents, and 60% of Republicans. The percent of Republicans in favor drops significantly in Congress where the number is zero.
Senate Minority Leader Mitch McConnell sums up the federally elected Republican’s aversion to the act by saying that this is the “most progressive legislation ever pursued by Democrats.” He’s right, but says it like it’s a bad thing. Congressional Republicans seem to accept today’s daily addition of 50,000 new COVID cases and 1,100 deaths paired with 10.2 million folks out of work [(6.2% unemployment) nearly double the 5.7 million without jobs (3.5%) in February 2020], as McConnell claims the economy is already better, ergo, the spending is unnecessary. The numbers don’t back him up.
It is true that there is a ton of potential in the economy, and COVID vaccinations are making great gains in public health, but doing nothing to push the recovery along seems criminal. The theoretical job of the federal government, whether you are in favor of limited or expanded government, is to assist the country in times of need. This is, without doubt, one of those times. If we can relieve folks’ suffering, hunger, insecurity, and improve general health and welfare, government should do it.
The Biden administration has learned two important lessons from the Obama administration’s attempt to boost the economy in 2009. Obama’s first mistake was listening to Republicans who said the Stimulus Act was too big, needed to be pared down, and then they could vote for it. Obama listened, believed, pared down, and got no Republican votes. The stimulus turned out to be too small and would have helped much more if the original Democratic plan had been put in place. Biden didn’t listen to the same story this time––fool me once … The other Obama error was to think the value of the stimulus package could speak for itself and people would understand it and approve as it went into effect. That didn’t work. The stimulus was misunderstood and not nearly as effective as it could have been if it had been broadly touted with explicit directions to illustrate how the public could access money and programs. The Obama administration took the same route with the Affordable Care Act and didn’t applaud the amazing benefits, leaving Obamacare largely misunderstood for years. Not this time. Pres. Biden, V.P. Kamala Harris, FLOTUS Jill Biden, First Gentleman Doug Emhoff, and a host of other high-profile administration names will be fanning out across the country to take what can legitimately be called a victory-lap, but is more importantly designed to deliver the specifics needed so folks can get extended unemployment benefits, enrolled in expanded healthcare, file tax credits for their kids, stay in their homes, allow black and brown farmers to keep their farms, access the funds that will allow small business owners to hang on just a little while longer, and most importantly, get vaccinated. Republicans call all this “pork,” but it will make lives better today rather than taking McConnell’s advice and waiting a year or more for our economy to boom. It surely will boom in the coming months, but the reason won’t be from inaction, rather from a relief package that pulls out all the stops.
Application of this act will bring a third of Americans out of poverty including half of the children living without means. $22 billion will go to rental and other housing needs. $5 billion for homeless services and $5 billion more for emergency housing vouchers. More money will help renters fight discrimination––an item Republican lawmakers point to as “not pandemic specific.” If one cannot rent because of the color of their skin, they are still homeless and in need of gaining equal treatment.
$125 billion will go toward school reopenings. The CDC offers guidelines for safe schools and much of it requires money that is not available without federal assistance, including adequate ventilation systems, extra custodial help, more teachers and staff to work in more classrooms holding fewer students. Library resources, Wi-Fi upgrades, and workforce development opportunities are all funded. Colleges and universities get help to make up for declining enrollment and students get loan assistance. None of these costs are in any school’s yearly budget.
This report barely scratches the surface of who is helped. Every American will see a benefit. Rightly, the poor and working class are getting the lion’s share. They are most in jeopardy and the ones who will make the biggest impact on reestablishing that booming economy.
Much of the act is temporary. The $1,400 individual relief payments are a one-time benefit. The $300-a-month extended unemployment payments expire in September, the child tax credits expire after a year. Hopefully, much of the ARA won’t need to be renewed. Other provisions are worth fighting for to make permanent.
The $1.9 trillion price tag will be significantly reduced when everyone is healthy, the economy is working again, and tax dollars start to refill government coffers. The ARA is an investment; not too expensive; not pork; not unnecessary; with care and monitoring, not inflationary; and extremely unwise to delay any further.
Leah Ebella says
Great, positive article!👏🏽👏🏽👏🏽 Thank you! Someone would be foolish not to see that this bill was, is much needed and that families have been in dire need for sometime. This bill puts many, many people on the road to recovery from poverty, eviction, starvation, unemployment, Healthcare, etc. Its def a great thing🙏🏾❤ I dare anyone to say different. Ppl that disagree just don’t get it. Period.
Dennis E Cournoyer says
Kool aid drinker from birth and FOS for life
Dennis E Cournoyer says
9% for covid relief and 91 % for the democratic party to ensure POWER for all time….and donnlley supports this trash
Pete Blair says
I wonder how much is going to demo cities to bail out their failed pension plans. Why is planned parenthood getting money? I read the same thing, 91% pork and 9% for the ordinary person
RICK CRAIN says
Terry,
You really make this pork ridden ARA sound like manna from heaven! Unfortunately, what you’re talking about is just a small portion of the $1.9 Trillion bill. Also, the school funding doesn’t go into effect until next year because the funds from the last massive spending bill haven’t been spent yet. The bulk of these funds go to Blue states and the unions that have over spent their budgets and are getting bailed out by we the people. You seem to forget that the government doesn’t have any money. They get that from we the people! Or they can just print more money and put us further in debt to Biden’s best buddies – the Chinese.
Some how we the people are going to get stuck with higher taxes! I know Biden says he’s not going to raise taxes on the middle class right now. But he’s only been there 56 days (and still hasn’t had a press conference to receive soft ball questions) but he has 1404 days to go so I am sure he’ll sneak in a tax increase with him having both houses of congress. With the senate majority leader talking about removing the filibuster everything the Democrats want will sail through including resending the Trump Tax Relief law that the Democrats didn’t vote for anyway. Thereby, raising taxes on the middle class.
Terry Donnelly says
Mr. Crain,
The Trump tax cuts are expiring in 2025, not due to Democrats, but because that’s how Mr. Trump’s administration wrote the bill. That’s just the tax cuts expiring that go to the middle and lower classes that is. The Trump administration did the extra work to make sure the corporate tax cuts were permanent.
The Biden administration may raise taxes but only on those who make more than $400,000.00 and only on the amount above that threshold. If that is you, I think you’ll survive.
As for the remainder of the spending in this act, I’m confident that the economy and the nation’s health will benefit 100%. We’ll talk about it in a year when we have some facts to debate.
Mike baldwin says
Terry – You know that corporations do not pay taxes. They pass all to us the people. Raze taxes and people go elsewhere, is that not why we are here? Raze taxes on Corporations and they go too.
Today our taxes are not going to help us but to help those who do not pay taxes. Many who send their non-taxed earns south, that not racist, but fact. The sad thing is, they continue to take free government service for the poor.
Terry Donnelly says
Mr. Baldwin, Your idea sounds great to liberals. If you don’t want to pay for corporate taxes in passes-along costs, and if you don’t want jobs moving away due to higher production costs, wages, and taxes, simply turn all production and services over to the government. They can run production of goods and services for much less without the need for profit or the need to raise prices due to higher taxes on the company. Also, they would stay put and not move off-shore or to another country if they were all U.S.A. owned and operated. This isn’t my idea, but it is a solution to yours.
Gary Lapple says
You sir are 100% wrong. But hey, enjoy your $1400 sedative while team Xiden takes your freedoms while hiding behind razor wire, or in Xiden’s case the White House basement. Uh…what am I signing? The poor man is a pawn, too senile to know it, and signs whatever the communists place in front of him.
A nation can not keep accumulating debt and expect to survive. I believe “they” are grifting whatever wealth is left before it all falls down.