The Senate just failed to pass more stimulus for a struggling economy. Here’s why.

“The 52-47 vote, which was intended to demonstrate Republican unity and support for the stimulus while putting pressure on Democrats, was only mildly successful in that aim, with 52 Republicans supporting the bill and Sen. Rand Paul voting against it. No Democratic senators, who’ve long pushed for a more expansive stimulus package, voted in favor of it. As a result, the bill was unable to meet the 60-vote threshold it needed to advance.

Republicans’ legislation contained roughly $650 billion in aid, according to the Wall Street Journal, including funding for school reopenings, the US Postal Service, and a weekly $300 supplement to unemployment insurance. Democrats’ more expansive HEROES Act, meanwhile, contained $3 trillion in aid including money for a $600 weekly unemployment supplement, another round of $1,200 stimulus payments, and support for state and local governments, in addition to funding for schools and USPS.

Since Thursday’s vote was a strategic maneuver aimed more at sending a message than producing actual policy, it wasn’t expected to pass to begin with. Instead, it was intended to give vulnerable Republican senators something to point toward as evidence they’ve backed more aid going into the election this fall.

The vote was also a way to get Democrats “on the record” opposing stimulus, according to Senate Majority Leader Mitch McConnell — a framing that could be used to cast blame in the coming months, though it ignores the fact that the Democrat-led House passed its own stimulus package months ago.”

Why we can’t build

“America’s system of checks and balances requires unusual and even extraordinary levels of consensus to pass legislation. First, you need the agreement of the House, the Senate, the White House, and, increasingly, the Supreme Court.
More granularly, congressional power is diffused across committees. The Senate has built in a supermajority requirement, known as the filibuster, which effectively raises the threshold for passage from 51 votes to 60 votes.

This raises the question: If the problem is embedded in the structure of the US government, how did the US ever do anything big? The short answer is that for most of our political history, two unusual conditions held. First, the parties were ideologically mixed, which made compromise easier. Second, one party was usually electorally dominant, which gave the party in the minority a reason to compromise: If you can’t win, you may as well deal.

Both those conditions have dissolved. America’s political parties are more ideologically — and demographically — polarized than ever before. We’re also in the most competitive period American politics has ever seen. In a system like that, both sides utilize the system’s bias toward inaction to foil their opponents. You can see this in the rise of the filibuster over time. The rule has been around almost as long as America, but it’s only been deployed as an omnipresent veto in recent decades”

“The result is a system biased toward inaction.”

” This is representative democracy at its worst: A democracy that only represents those who know to show up at meetings most people never hear about, and so ends up handing power to special interests and aggrieved NIMBYs.”

“some of Andreessen’s examples really can’t be blamed on the government, at least not in a traditional sense.

America doesn’t have more ICU beds because hospitals have budgets to balance. You can’t both run a profitable hospital and maintain enough spare capacity for a once-in-a-century pandemic.

Similarly, the companies that make ventilators are private companies. They didn’t make more ventilators because there wasn’t demand for more ventilators. Same goes for surgical masks, eye shields, hospital gowns. Now, you can argue the government should’ve been stockpiling more of this stuff all along — and definitely should have been ramping up production in January and February — but a capitalist logic of efficiency prevails both inside and outside the market.

Take, for instance, the wildly successful Obama administration program to loan money to renewable energy companies that became infamous because one of those companies, Solyndra, was a bust. That program led to a slew of successes (including Tesla) and turned a profit to taxpayers. As Michael Lewis argues at length in his book The Fifth Risk, the problem, if anything, was that it was too cautious — so afraid of a Solyndra-like story that it wasn’t funding sufficiently risky investments. But they proved right to be afraid.

If even the government is forced to turn a constant profit on its programs and to avoid anything that might look like a boondoggle, you can imagine the pressure actual private companies are under.”

The National Debt Is ‘Unsustainable’ and the Pentagon’s Finances Are a Total Mess, Federal Audit Says

“Measured as a share of the entire U.S. economy, the national debt has doubled in just 12 years and is on pace to grow to historical highs within the next decade. The federal government’s budget deficit—the gap between how much revenue it raises and how much money it spends—is expected to exceed $1 trillion this year.”

“Lawmakers from both major parties have worked together in recent years to pass budgets that exploded annual deficits and added to the debt. Democrats running for president are promising to hike federal spending by trillions of dollars to pay for free college, government-run health care, and the fight against climate change—and even though they are also promising to raise taxes, the math doesn’t add up. That means deficits will continue to grow. Meanwhile, President Donald Trump has abandoned any pretense of fiscal conservatism, and most of his party has followed suit.”