Pro Perspectives 5/13/20

May 13, 2020

With $2.7 trillion worth of fiscal stimulus still in the early stages of working through the system, the Democrats are proposing another $3 trillion.

What’s this all about?

Buried among the many unimaginable giveaways, there are looking to push through mail-in voting.  Mail-in voting has been found to dramatically increase voter participation, which is believed to be a direct benefit for the Democratic party. This would be a significant edge for the Democrats in the November election.

And the democrats are in a race to get it to a vote.  What are they racing against?  The improving trajectory of the health crisis.  As economies open, and people return to life outside of their homes, the case that the Democrats have made for mail-in voting erodes rapidly.  The case:  “We can’t ask Americans to risk their lives, leaving the house and standing on line to vote.”

With the above in mind, expect everything to be negotiable in the package (by design), except “voting reform.”

Also expect the Republicans to give zero consideration to more stimulus, for the obvious reason, and until, at least, the impact of more than $5 trillion worth of Fed and government stimulus is known.