Biden Plans $1.9 Trillion Coronavirus Rescue Program

United States Capitol
Workers drape a flag from the facade of the United States Capitol in Washington DC for Joe Biden’s inauguration ceremony, January 9 (Victoria Pickering)

Joe Biden is planning to ask Congress for $1.9 trillion in the first weeks of his presidency to cope with the effects of the coronavirus pandemic in the United States.

Matthew Yglesias and Punchbowl News, a new Capitol Hill-focused newsletter, have the details:

  • $400 billion for health, including $50 billion for testing, $30 billion for protective gear and $20 billion for vaccinations.
  • Hire 100,000 public health workers.
  • A mandatory paid sick leave program.
  • $1,400 cheques to all Americans on top of the $600 cheques sent in December.
  • Extend federal unemployment benefits at $400 per week.
  • Extend the eviction moratorium.
  • $30 billion in rental assistance.
  • Raise the federal minimum wage to $15 per hour.
  • Raise the child tax credit to as much $3,600 per year for families with young children.
  • $350 billion in financial relief for local, tribal and state governments. Read more “Biden Plans $1.9 Trillion Coronavirus Rescue Program”

Aruba, Curaçao Agree to Terms of Dutch Coronavirus Aid

Oranjestad Aruba
Aerial view of Oranjestad, Aruba (iStock/Darryl Brooks)

Aruba and Curaçao have agreed to liberalize their economies in order to qualify for continued financial support from the European Netherlands, without which the islands would almost certainly go bankrupt.

The coronavirus pandemic has brought tourism, on which the islands depend, close to a standstill.

Sint Maarten, the third autonomous Dutch island in the Caribbean, has yet to meet the terms of Dutch aid, which include cutting public-sector salaries by 12.5 to 25 percent. Read more “Aruba, Curaçao Agree to Terms of Dutch Coronavirus Aid”

Statism Makes a Comeback in the United Kingdom

London England
The British flag flies over the Cabinet Office in London, England (Shutterstock/Willy Barton)

Two months ago, I argued Britain was once again the sick man of Europe. It had the second-highest per capita COVID death rate among major countries. Economic output had fallen 20 percent from the year before.

The crisis wasn’t lost on policymakers. The dual shock of coronavirus and Brexit — Britain formally left in 2019 but still applies EU rules and regulations this year — has led to something of a quiet revolution in Whitehall: the potential rebirth of the interventionist state.

There is still much wrong with how the British government has handled both events, the poster child for COVID being the decimation of the British aviation and travel industry as well as the arts. Not since the closing of the coal mines has an entire industry shrunk so dramatically.

Yet the seeds of a new statism have been sown — by a Conservative government. Read more “Statism Makes a Comeback in the United Kingdom”

Caribbean, European Netherlands Close In on Bailout Deal

Eugene Rhuggenaath Raymond Knops
Prime Minister Eugene Rhuggenaath of Curaçao and Dutch state secretary Raymond Knops answer questions from reporters in The Hague, June 14, 2019 (ANP/Lex van Lieshout)

Aruba, Curaçao and Sint Maarten are closing in on a deal with the European Netherlands for hundreds of millions of euros in support to cope with the impact of COVID-19.

The sticking point in negotiations has been the Netherlands’ insistence that Dutch officials would carry out and monitor economic reforms on which the bailout is conditioned; a demand Caribbean leaders argue is incompatible with their autonomy.

Prime Minister Eugene Rhuggenaath of Curaçao, the largest of the three self-governing islands, told lawmakers this week that a compromise is at hand.

The Dutch supervisors would remain, but any decisions they take that affect spending and taxes would need to be ratified by the island legislatures.

The government of Curaçao would also be consulted on the appointment of one of the three supervisors.

Antilliaans Dagblad reports that a majority of lawmakers on Curaçao could agree to those terms.

But Raymond Knops, the Dutch state secretary for the interior, sounded less optimistic on Tuesday, when he told parliamentarians in The Hague that the three islands are currently unable to “bear” their autonomy. Read more “Caribbean, European Netherlands Close In on Bailout Deal”

Dutch King Announces Borrowing, Investments to Weather COVID-19

Willem-Alexander of the Netherlands
King Willem-Alexander of the Netherlands reads out his annual speech from the throne in the Grote Kerk in The Hague, September 15 (Rijksoverheid)

The Netherlands’ ruling center-right coalition unveiled an expansionary budget on Tuesday, when King Willem-Alexander read out his annual speech from the throne to set out the government’s priorities for the next fiscal year.

Whereas the Dutch government, then also led by Mark Rutte, raised taxes and cut public spending during the last economic crisis to keep its budget deficit under the EU’s 3-percent ceiling, it now argues against austerity and is borrowing the equivalent of 7.2 percent of GDP (down from an earlier estimate of 8.7 percent).

Rutte argues the savings made in previous years allow the government to avoid cuts this time.

The Dutch economy is projected to shrink 5 percent this year as a result of COVID-19 and grow 3.5 percent next year, when unemployment would reach 545,000, or almost 6 percent. Debt as a share of GDP is projected to rise from 49 to 61 percent. Read more “Dutch King Announces Borrowing, Investments to Weather COVID-19”

Dutch Caribbean Islands on the Brink

Willemstad Curaçao
View of Otrobanda from across the Saint Anna Bay in Willemstad, Curaçao (iStock/Flavio Vallenari)

Time is running out for the autonomous Dutch islands in the Caribbean to do a deal with their former colonizer.

Coronavirus has brought tourism, the mainstay of the island economies, close to a standstill. Tax revenue has dried up while unemployment has soared. Without support from the European Netherlands, the governments of Aruba, Curaçao and Sint Maarten will run out of money in weeks.

The Dutch are willing to help, but only if the islands accept temporary Dutch administrators to manage reforms. For most of the Caribbean politicians, this goes too far. Read more “Dutch Caribbean Islands on the Brink”

What’s in France’s €100 Billion Stimulus

Emmanuel Macron
French president Emmanuel Macron answers a question from a reporter in Helsinki, Finland, August 30, 2018 (Office of the President of the Republic of Finland/Juhani Kandell)

France has unveiled a $100 billion stimulus program, worth 4 percent of GDP over two years, to help its economy recover from the effects of COVID-19.

The money is split almost equally between support for businesses, investments in the green economy, and health and social programs. It comes on top of the €460 billion France has spent on exemptions from social charges, furlough subsidies and soft loans to keep businesses afloat.

France is counting on the EU to provide 40 percent of the money from its €750 billion recovery fund. Read more “What’s in France’s €100 Billion Stimulus”

Dutch Extend COVID Aid for Businesses

The Hague Netherlands
Dutch government offices and parliament buildings in The Hague (iStock/Fotolupa)

The Dutch government has extended support for companies and self-employed workers struggling as a result of COVID-19 until July 2021, although some policies are becoming less generous.

The thinking, reports the national broadcaster NOS, is that firms shouldn’t be subsidized if they aren’t viable long term and workers in sectors with job losses should be coaxed into reskilling.

The measures will cost almost €39 billion this year. The Dutch economy is projected to shrink 6.4 percent. Read more “Dutch Extend COVID Aid for Businesses”

To Trump, Blue America Is Expandable

Chicago Illinois
Chicago, Illinois at night (Unsplash/Max Bender)

Asked about riots in America’s major cities, Kellyanne Conway, President Donald Trump’s outgoing political advisor, told Fox News:

These are Democratically-led cities and most with Democratic governors. It’s not Donald Trump’s watch.

(That didn’t stop Trump from deploying federal troops to Portland over the objections of the city’s Democratic mayor and Oregon’s Democratic governor in June.)

The suggestion that the president isn’t responsible for the whole country, but only to those parts that are loyal to him, is outrageous.

But it is how Trump has governed. Read more “To Trump, Blue America Is Expandable”