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The US president announced Tuesday that he was freezing, until the presidential election, negotiations with elected Democrats for a plan to help households and businesses affected by the health crisis. The stock market immediately slipped and Democrat Joe Biden lambasted the Republican’s decision.
President Donald trump abruptly ended, Tuesday, October 6, negotiations with Democrats on new aid to households and businesses affected by the coronavirus pandemic.
“I asked my representatives to stop negotiating until after the election,” tweeted the US president, accusing Democratic leader Nancy Pelosi of not negotiating “in good faith.” “As soon as I win, we will vote on a big aid package that will focus on American workers and small businesses,” he added, postponing talks until after the November 3 presidential election. .
Nancy Pelosi is asking for $ 2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19. We made a very generous offer of $ 1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their …
– Donald J. Trump (@realDonaldTrump) October 6, 2020
The move immediately brought down Wall Street, which closed in the red, while many economists and experts have already warned that the absence of a new government boost could slow down the recovery in economic activity.
Financial difficulties in sight
It means that many Americans, including those who are unemployed, from local communities and businesses such as hotels, airlines, bars and restaurants, are going to face financial difficulties in the coming weeks.
Democratic White House candidate Joe Biden accused Donald Trump of having “turned his back” on them. “Make no mistake: if you don’t have a job, if your business is closed, if your child’s school is closed, if you see layoffs around you, Donald Trump decided today that none of that, absolutely nothing, mattered to him, “added Joe Biden in a statement.
Make no mistake: if you are out of work, if your business is closed, if your child’s school is shut down, if you are seeing layoffs in your community, Donald Trump decided today that none of that matters to him.
– Joe Biden (@JoeBiden) October 6, 2020
Certain sectors very affected, such as tourism and air transport, have already announced massive layoffs: 19,000 people for the airline company American Airlines, 13,000 at United, or 28,000 in Disney theme parks . The organization representing the airline industry, Airlines for America, said it was “disappointed” at the inability of politicians to agree on a text that “would have saved tens of thousands of highly skilled jobs”.
During the evening, the tenant of the White House, however, called on parliamentarians to agree on more limited measures. On the one hand, he urged senators and representatives in the House to “approve IMMEDIATELY” in aid of $ 25 billion for airlines as well as a plan of $ 135 billion for small businesses. These two programs “will be financed with unused funds” from the first major aid plan, he said on Twitter.
Donald Trump also assured that he would immediately endorse any restricted law providing for a check for 1,200 dollars for American households if parliamentarians sent him one.
The amount of the envelope divides
The Trump administration and elected Congressional Democrats began more than two months ago negotiating new aid for the 12.6 million unemployed Americans and for low-income households, as well as for businesses devastated by the consequences of the Covid-19 pandemic. The measures adopted at the end of March as part of the gigantic support plan of 2,200 billion dollars, then extended by 500 billion, are in fact gradually expiring.
After several weeks at a standstill, discussions between Nancy Pelosi and Treasury Secretary Steven Mnuchin had yet resumed. They spoke briefly shortly after Donald Trump’s announcement, a spokesperson for Nancy Pelosi said, adding that Steve Mnuchin took the opportunity to confirm the end of negotiations.
“Once again, President Trump has shown his true colors: to put his interest before that of the country, with the full complicity of Republican members of Congress,” criticized Nancy Pelosi in a statement.
President Trump has shown his true colors: walking away from coronavirus relief negotiations and refusing to give real help to poor children, the unemployed, and America’s hard working families. https://t.co/gic4yuVsTB
– Nancy Pelosi (@SpeakerPelosi) October 6, 2020
The discrepancies were too great, and the total amount of the envelope was particularly problematic. The Democrats were initially asking for $ 3 trillion but over the course of the discussions agreed to lower it to $ 2.2 trillion. The Trump administration had for its part made a gesture, saying it was ready to 1.6 trillion after an initial amount of only 1000 billion.
Joining his voice to those of other economists, the president of the American Central Bank Jerome Powell had warned a little earlier against the disastrous consequences for the economy of an absence of new public aid. “Too little support could lead to a more fragile recovery, leading to unnecessary suffering for households and businesses,” he said. “Over time, household insolvencies and business bankruptcies would increase, harming the economy’s productive capacity and slowing wage growth,” he warned, employing an unusually alarmist tone.