Stimulus — Another victory for President Trump

House Speaker Nancy Pelosi waited until after the election. She could have had a bigger bill if she hadn’t put politics ahead of America’s interests.

Congress has finally passed a second stimulus package. This time, the package contained $900 billion worth of relief for American households and for business. House Speaker Nancy Pelosi back in May of this year, wanted a $3.4 trillion package, while President Trump did not want the package to exceed $1 trillion.

In spite of the politics being played, Trump won again. Pelosi could have had up to $1.6 trillion last October, but her desire to avoid any action that could benefit Trump at election time meant she decided to wait until after November 3.

Trump wanted to strike a reasonable balance between economic stimulus and huge government budget deficits. While there is near unanimous consent that a second stimulus package is needed, the resulting multi-trillion-dollar budget deficit is very problematic.

That’s because when the government incurs a deficit, bonds are sold to raise the funds to pay for the extra spending. The problem is that there in no mechanism in place to ever pay this money back. When the bonds mature and must be repaid, new bonds are sold to pay off the original bonds, as the debt is “rolled over.”