Only Congress Can Spend Federal Monies
“No Money shall be drawn from the Treasury, but in consequence of Appropriations made by Law.”
— U.S. Constitution, Article I, section 9
Congress and the White House have been at loggerheads for weeks on the next phase of federal aid to those suffering financially and who lost jobs because of governor-mandated lockdown orders in response to the COVID-19 pandemic. At last count, more than 30 million Americans who had full-time jobs a year ago are today unemployed.
All states have unemployment compensation for which employees and employers make regular contributions. The payments of compensation are calculated as a percentage of income earned in the year before the job loss. Obviously, this number is different for all people, and it varies from state to state.
Embarrassed that it was caught flat-footed in the failure of leadership over the COVID-19 pandemic, the federal government — pursuant to appropriations made by law — borrowed $3 trillion in April, May and June of this year and shipped out nearly all of it to small businesses and individuals. It gave $600 a week in unemployment compensation to those out of work, irrespective of their 2019 earnings and in addition to whatever state funds these folks received.
This is the worst way out of this politically induced recession. Borrowing and giving away money will just postpone the day of reckoning. Rather, the feds should cut taxes and spending drastically, and give tax credits to businesses for each person hired. The states, in turn, should permit those who want to operate their businesses to do so, with their customers and employees assuming the risk of patronage or employment.
But don’t hold your breath for these f
Article from LewRockwell