Tuesday, October 6, 2020

The House has to pay off the capitals in smaller states

The bottom line, contrary to recent expectations that Trump's covid diagnosis made a Congressional deal slightly more likely, it appears that the dominant status quo from the past months remains unchanged, and that both sides are unwilling to budge over that final $600BN difference (recall that Republicans are at $1.6 trillion and Dems are at $2.2 trillion), which with every day that passes and brings us closer to the election, makes a deal unlikely.

Too many code words are hampering the dialogue.  

Find the Coasian congestion point.  If the House does not want to recognize the problem, then fine.  The other solution is do no stimulus until after the election. But code words confuse the debate.

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