https://www.wsj.com/articles/a-phase-four-flop-11595547924?mod=opinion_lead_pos1
As Washington debates how many more trillions of dollars to borrow and spend, we are in a familiar political spot. Democrats want to spend as much as they can on everything, while Republicans have no idea what they want. Guess how this is likely to turn out?
Democrats are united behind the $3 trillion Heroes Act that passed the House in May. This is on top of the nearly $3 trillion that Congress has already passed. Much of the latter hasn’t even been spent so far. But we are told Congress must double that amount or the economy will fall off a cliff on Aug. 1 when extra federal jobless benefits expire.
Yet the economy is recovering, albeit from a deep second quarter hole. The rapid jobs rebound of May and June has slowed as the virus swept through the South and West, and partial business shutdowns have resumed. But the economic free fall of the spring is over. The Federal Reserve’s financial backstops have reduced what some feared would be a surge of bankruptcies. All signs are that if the virus can be better contained, the economy can continue to recover through the end of the year.
In any case there’s almost nothing in the “phase four” proposals that would spur faster growth. The Senate GOP’s draft proposals contain Covid-specific liability protection for businesses that reopen. That would help, assuming it isn’t watered down in negotiations with Democrats. More money for testing and health care is arguably pro-growth if it helps Americans feel more secure in returning to work and school.