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As November comes to a close, it’s now clear that the month will end without a stimulus deal in sight.
Lawmakers have continued to speak in general terms about their support for a stimulus bill and have continued to fire shots across the aisle and place blame on the other side for why nothing has been done.
Speaker of the House Nancy Pelosi, who is the lead stimulus negotiator for Democrats, stated:
“Over six months ago when we passed the Heroes Act, Leader McConnell said we need a pause. We need a pause. Well, I would hope that for him, the pause can come to an end. Nearly 200,000 people have died during that pause, so we’re asking him to come back to the table.”
The two sides, Democrats and Republicans, are currently at a standstill because of their drastically different views on the size and scope of the next stimulus package.
Republicans still seem to favor a package around $500 billion while Democrats are interested in a bill totaling $2 trillion or more.
What’s interesting is that there are reports that the Biden team is pushing Democrats to give in to a “smaller package” in order to get relief out quickly.
I think the strategy there is to ultimately pass a larger bill once the regime change is settled.
But they would prefer for some form of relief to get out before inauguration day to mitigate the damage done to the economy.
It’s actually a pretty smart play.
Democrats know that Republicans will be on board with passing something smaller — perhaps in the range of five hundred billion dollars to one trillion dollars.
That would help ensure that when Biden takes office in January (which seems to be very likely) the economic situation is not quite as bad as it would be without aid.
Then, if Democrats do end up sweeping the Georgia run-off election they could focus on passing the large bill that they have always been interested in.
If Democrats do not sweep the runoff election, which seems like the likely outcome, then they will face a much tougher uphill battle to get a large package passed.
But at least that battle could stretch out as far as needed if some form of relief has already gone out.
I think the big question is whether or not stimulus checks would be included in a smaller Democrat bill?
We already know that Republicans have excluded stimulus checks from their smaller proposals.
However, Republicans have shown support for stimulus checks on various occasions.
So it will be very interesting to see if stimulus checks will be included if and when Democrats choose to pass a smaller bill.
While the Biden administration has stated that their number one priority is economic recovery, they do not have a direct mention of stimulus checks on their economic recovery plan that they outlined on their website.
So the big thing to watch in the near future is what type of terms might Democrats discuss when it comes to a smaller package.
I’ve got a feeling that stimulus checks would be a necessity for Democrats and I think they would have a good chance of getting them passed since Republicans have been on board with them to a large extent.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.