![economy.jpg](https://images.hive.blog/DQmYFyJmquSeMPVQjnsb67tDYnoG2PdT83LvZSvAmDg5XkL/economy.jpg)

This is a follow up on my post from a month ago -  [Next couple of weeks US politicians will be deciding on the future of the US Economy](https://leofinance.io/hive-167922/@geekgirl/next-couple-of-weeks-us-politicians-will-be-deciding-on-the-future-of-the-us-economy).

The US economy plays an important role on how global economy performs due to the modern interconnected economies. It wasn't too long ago when the financial collapse of the housing of 2008 caused a global economic decline and recession. Because of the Covid-19 crisis of 2020 which brought all economies globally on hold and changed the way we conduct everyday things, billions of people across the globe live in uncertainty of the future and face the unprecedented hardships. 

The US Economy, being one of the largest economies in this interconnect world, plays a vital role in addressing the crisis. Failure and success of it has enormous implications on the global stage and how the crisis is averted. Yet, this global power/leader fails to rise to the occasion addressing the issue, entangled with domestic politics of gaining political points and confusing the masses. 

Unlike the crisis of 2008, the crisis of 2020 while being a rare one did provide with ample time for politicians to come up with proper solutions. Sadly, they failed once again. 

Top companies, so called 'Big Four' like Amazon, Facebook, Google, Apple, and Microsoft are doing just fine. Many big companies are doing fine as well. Who is hurting the most are the small business and ordinary folks who has been doing ordinary things in an extraordinary fashion.

After the July 4th long recess, the US Congress got back to work and they had one agenda to tackle - Covid-19 response and continued stimulus package. The main players in this political game are/were Nancy Pelosi - the speaker of the House (Democrat), Mitch McConnell - the majority leader of the Senate (Republican),  Chuck Schumer - the minority leader of the Senate (Democrat), and the President of the USA - Donald Trump (Republican). 

All parties agreed that something had to be done to keep the status quo and stimulate the economy before things got worse. Democratic House of the Congress passed a Heroes bill to address the Covid-19 issue that would cost 3.4 billion dollars almost three months ago. Republicans in the leadership of McConnell decided to postpone the matter until after their July 4th recess. 

After Congress got back to work from their recess, Mitch McConnell came up with a half cooked solution bill in response to Democrats Heroes Act, which was named Heals Act. It wasn't even popular among Republicans themselves, that about 20 Republicans of the Senate were not eager to vote fore. Not long after announcing the bill Mitch McConnell deferred negotiations with Democrats (Nancy & Chuck) to the representatives of the White House. McConnell even publicly said he would sign off on any agreement reached between White House and the Democrats. 

In essence, the Republicans of the Senate just decided to pull back and watch instead of doing their job they were elected to do. What a scam!

It is important to note that the most influential figure in the US politics is the Senate majority leader - Mitch McConnell. If he chooses to he can/could bring the House Heroes bill to the vote on the Senate floor. Those who vote for/against would/could suffer the consequences. Even if the president has a power to veto the bill. Any bill can overcome the veto with 2/3 of votes in the Senate. 

The US politics is polluted with partisan politics, that most actions are done in favor fo long term party survival rather than the immediate needs of the American people, economy, or the national priorities. 

This year being an election year for the presidency doesn't help the matter to be resolved in a rational way at all. Both sides: the Democrats and the Republicans are after political points rather than tackling the important issues with a fear that actions may help the other party. 

All this said, the core disagreement in negotiations for stimulus package come down to the aid to State and local governments. Democrats asking for a massive 950 billions dollars, Republicans say 150 billions. This is what stalled and stopped the negotiations in the first place. Most other matters like stimulus checks of $1200 like the previous time with Cares Act, more unemployment insurance boost of $600, more funds for schools, more loans to small businesses are seem to be in agreement with both parties.

Two thing they couldn't agree on seem to be: one - bailing out the state and local governments due to the Covid-19 hardship and two - funding the United State Postal Service. The rest they seem to agree on, while they might have mild disagreements on the amounts. 

Yet, both sides failed to come to a compromise to address the major issues. It seems they both banking on gaining political points for the upcoming electoral occasions. I believe they both failed to gain any points leaving those of us affected wishing for the third option. 

Of course, the matter doesn't end here. The president Trump came up with his own executive orders to tackle the economic challenges, which just add more confusion rather than solutions. More about that next time.

In the meantime, the US Congress is enjoying another recess and are not due back to work until after the Labor Day in September. Our politicians do love their vacations.

Posted Using [LeoFinance](https://leofinance.io/@geekgirl/american-politics-simplified-failure-to-reach-compromise-in-stimulus-package)