Congressional Political Theater is Now at Absurd Levels to the Detriment of the U.S. Economy
I worked in the political arena, with a focus on government budgeting, for over a decade.
Politics, the game-play version, was always present, the extent of which dependent primarily on the perceived importance of the situation at hand.
Considering the presidency is currently first and foremost on the minds of our elected officials in Congress, the political theater currently on display couldn’t be more outlandish.
Late last week, seemingly out of nowhere, Congressional Democrats began a concerted campaign to blame President Trump for slowing the operation of the U.S. Postal Service in an effort to, potentially, sabotage the mail-in ballots that are sure to result this November from Covid-19 concerns.
Nevermind the fact that mail-in ballots for both President Trump and Joe Biden would be affected if this were the case.
It turns out this campaign primarily resulted from a letter sent by the U.S. Postal Service General Counsel Thomas Marshall to a number of states warning that the mail-in voting rules the states have in place could pose problems for timely handling of ballots.
This then devolved to a closer look at President Trump’s appointee to Postmaster General, Louis DeJoy, and his cost-cutting/efficiency efforts since his appointment on June 15, 2020.
Of course, the fact that the USPS, which is classified as an “independent agency,” expected to support itself solely through revenue generated from postage and fees, has been unable to do so for years now is of no consequence.
In fact, it’s been 14 straight years that the U.S. Postal Service has spent more money than it was able to bring in.
With that in mind, it’s obvious there’s no need to reform the USPS to bring its budgeting in line with its mission. Just keep reaching out to the federal government to cover losses when needed. All is fine.
Sarcasm aside, for one side of the aisle, it’s most advantageous to overlook the financial realities and instead promote the fear-mongering of inadequate-funding-will-put-the-November-election-in-jeopardy.
Here are some points of truth regarding the USPS, its financial situation and the upcoming election from an article written in the Washington Examiner by Byron York.
While the USPS – as usual – is spending more than it brings in, the Postal Service was given a $10 billion borrowing authority in the Cares Act passed in March. The ability to borrow will provide the USPS enough liquidity to make it through next year without an additional appropriation.
And, while not directly related to the Postal Service, the bill also included, “$400 million to something called the Election Assistance Commission for distribution to states to ‘prevent, prepare for, and respond to coronavirus, domestically or internationally, for the 2020 federal election cycle.'” Money that can surely be accessed to address issues related to mail-in ballots should it be deemed necessary.
So, there is no financial crisis associated with the USPS, or at least any more than normal, that would affect the November election.
Still, today, Postmaster General DeJoy announced, in part, “To avoid even the appearance of any impact on election mail, I am suspending these [operational reform] initiatives until after the election is concluded.”
I would encourage you to read the full Washington Examiner article for an overview of the current situation.
Never mind the Cares Act funding and Mr. DeJoy’s announcement, Speaker Nancy Pelosi has moved forward with calling House members back to D.C. this Saturday to vote on a $25 billion funding package for the Postal Service and to restrict Postmaster General DeJoy’s efficiency efforts.
Here’s where I really have a problem with the Democrats’ game-play.
They can reconvene to vote on a funding measure that is unnecessary, all the while milking the media coverage with a less-than-truthful spin on the situation, as they completely ignore acting on the Covid-19 relief measures that are vitally needed by many Americans and the U.S. economy.
It, unfortunately, is a crystal clear view of the Democrats’ priorities in a time of crisis. And those priorities are most definitely not the people they represent or the American economy.
If the Democrats wanted to save any face, here’s what they’d do.
Continue with their return to D.C. this Saturday to vote on the $25 billion relief package for the U.S. Postal Service, but include:
- Funding for enhanced unemployment benefits at a $400 per week amount
- Funding via forgivable loans to allow small and medium-sized businesses operating revenue during the coronavirus pandemic
- And a one-time stimulus payment to American families similar to what was provided in the Cares Act
Other appropriations will be needed in future relief bills to offset costs incurred by state, local and business entities – to name a few – related to the pandemic, but they are not a priority now.
The items listed above are needed now, with the possible exception of the stimulus payments.
The enhanced benefits will help to keep unemployed Americans – through no fault of their own – as close to financially whole as possible.
And the forgivable assistance to businesses will allow them to stay open – or prepare to open in some areas of the country – as business activity remains depressed due to government-mandated lockdowns and consumer concerns.
It’s amazing to me that our elected officials – from both sides of the aisle – cannot come together during this time of crisis.
It may seem like things are returning to normal, but I assure you, a near-term economic recovery is far from guaranteed, and a number of U.S. workers remain unemployed, in need of additional assistance.
The Economic Activity graph below from Mohamed El-Erian illustrates a disturbing flattening trend for many of the world’s major economies, including the U.S.
All the while, Congress remains deadlocked, and House Democrats find it amusing to play political games in a misguided effort to gain political advantage.
Maybe a better strategy would be to work cooperatively to help those currently in need while also developing policies that will boost economic activity and job creation, rather than destruction, in the coming months and years.
As I always like to say, keep the actions, rather than the words, of your elected officials in mind as you cast your ballot this November.
And, a contact to your U.S. Representative and/or Senators to let them know how you feel, most definitely would not hurt during this time of inaction and absurd political pandering.
image courtesy of tiverylucky and freedigitalphotos.net
