Tag Archives: slush fund

Gameplaying While Americans Were Dying

I rarely refer to Mitch McConnell without adding the entirely appropriate descriptor “most evil man in America.” There are probably people even more reprehensible, but so long as McConnell holds his current position in the Senate, he has an unequalled ability to indulge his consistently despicable instincts–to use that position to corrupt government institutions in service of money and power with no regard for the collateral effects on American lives.

By himself, the lunatic buffoon in the White House would be unable to inflict the widespread damage that McConnell aids and abets.

The New York Times, along with numerous other publications, has been reporting on Congressional efforts that preceded the critical emergency legislation intended to avert at least some of the  consequences of the Coronavirus pandemic.  A bill has finally passed, but the path to its enactment tells us everything we need to know about Mitch McConnell and today’s Republicans.

Speaking of that path…Once the nation’s businesses were mostly shut down, the Democratic House passed a bailout bill almost immediately, and sent it to the Senate–which delayed consideration because Mitch had given the Senate the weekend off..

According to several media outlets, when McConnell and the GOP did draft a bill, it contained no guaranteed aid to state governments, despite the fact that economists tell us that state aid is one of the most effective forms of economic stimulus, and among other things, it allowed corporations to continue laying off and firing people while they were taking bailout dollars. That isn’t just patently unfair– it would be likely to cause unemployment to rise, although a major purpose of a bailout is to prevent precisely that.

Paul Krugman noted that the GOP’s bill also denied “aid to many nonprofit institutions like nursing homes and group homes for the disabled.”

McConnell’s  bill did virtually nothing  to safeguard November’s election. It gave wealthier Americans more relief than poorer ones. It would have bailed out corporations without  requiring that money they received be used to pay workers, and without prohibiting its use for stock buy-backs.

Worst of all–the “cherry” on the top of McConnell’s corrupt sundae–the bill included a $425 billion fund for businesses that Treasury Secretary Steven Mnuchin could “do basically whatever he’d like with,” as Amanda Fischer of the Washington Center for Equitable Growth explained. The bill established the fund with no oversight provisions. Not only would the $425 billion essentially be a slush fund for a thoroughly corrupt administration, the bill would have allowed Mnuchin to delay reporting distributions for six months.

As Paul Krugman wrote, in a column titled “Adding Insult to Illness,”

If you want a quick summary of the state of play over fiscal stimulus legislation, here it is: Republicans insist that we should fight a plague with trickle-down economics and crony capitalism. Democrats, for some reason, don’t agree, and think we should focus on directly helping Americans in need.

Krugman had particularly harsh words for the Mnuchin “slush fund.”  As he noted, it would be difficult to justify giving that much unrestricted money to any administration. Krugman found it “almost inconceivable” that anyone would propose giving the demonstrably corrupt Trump administration the authority to help its friends and punish those it considers enemies.

Remember, we’ve had more than three years to watch this administration in action. We’ve seen Trump refuse to disclose anything about his financial interests, amid abundant evidence that he is profiting at the public’s expense. Trump’s trade war has been notable for the way in which favored companies somehow manage to get tariff exemptions while others are denied. And as you read this, Trump is refusing to use his authority to require production of essential medical gear.

So it would be totally out of character for this administration to allocate huge sums fairly and in the public interest.

Cronyism aside, there’s also the issue of competence. Why would you give vast discretionary power to a team that utterly botched the response to the coronavirus because Trump didn’t want to hear bad news? Why would you place economic recovery efforts in the hands of people who were assuring us just weeks ago that the virus was contained and the economy was “holding up nicely”?

Only someone a thoroughly evil as McConnell could look into the cameras with a straight face and complain that– by refusing to go along with this travesty–the Democrats were delaying relief to struggling Americans.