Tag Archives: national debt

Cuomo Hits Back at McConnell’s ‘Drop Dead Blue States’ Remarks as GOP Says Will Put Brakes on Aid in Midst of Pandemic

New York State Governor Andrew Cuomo hit back hard on Republican Senate Majority Leader Mitch  McConnell signaling he would block aid to states most impacted by the coronavirus. McConnell boasted in a press release that he had no intention of bailing out “blue states.” © Karen Rubin/news-photos-features.com

By Karen Rubin, News-Photos-Features.com

New York State Governor Andrew Cuomo hit back hard on Republican Senate Majority Leader Mitch  McConnell signaling he would block aid to states most impacted by the coronavirus. McConnell, boasted in a press release that he had no intention of bailing out “blue states.”

Cuomo, who is staring down a $15 billion budget deficit, said that without federal aid, states (which are not allowed to go bankrupt) would be forced to cut back on health workers, police, fire, teachers, mass transit and social services as the state.

“15,000 people died in New York, but they were predominantly Democratic so why help them? Don’t help New York State because it is a Democratic state? How ugly a thought. Think of what he’s saying,” Cuomo said during his April 23 press briefing.

“For crying out loud, if there were ever a time for you to put aside your pettiness, your partisanship, your political lens you see the world through – help Republicans but not Democrats – that’s not who we are. If ever there was a time for humanity, decency, now is the time.”

Except that is exactly who McConnell and the Republicans are, and demonstrated it through every crisis.

McConnell is clearly seeing the political advantage of pushing Blue States into near bankruptcy – that figured into how he constructed the 2017 Tax Act which limited the deductibility of State and Local Taxes (SALT) because it would adversely impact blue states over red ones, force state government to cut back on services or risk a tax revolt.

But Cuomo also pointed to the stupidity of that: California is the world’s 5th largest economy and accounts for 14% of US GDP; New York State is the third largest economy in US, accounting for 8% of GDP – taken together, these two states alone account for nearly one-fourth of GDP.

“If New York and California are allowed to go bankrupt, that would take down the entire economy,” Cuomo said.

Moreover, Cuomo insisted, “When it comes to fairness, New York State puts much more money into the federal pot than it takes out. At the end of the year, we put in $116 billion more than we take out. His state, Kentucky, takes out $148 billion more than they put in. He’s a federal legislator distributing the federal pot of money  and New York puts in more money to fed pot than takes out, his state takes out more than it puts in. Senator McConnell,  who’s getting bailed out? It’s your state that is living on the money that we generate. Your state is getting bailed out. Not my state.

“How do you not fund schools, hospitals in the midst of crisis, police, fire, healthcare – frontline – if you can’t fund the state, the state can’t fund those services. It makes no sense.” (Probably the same way you cut $500 million in funding to the World Health Organization in the midst of a pandemic.)

“The entire nation depends on what governors do to reopen,  but then not fund state government? I am I going to do it alone?

“States should declare bankruptcy? That’s how to bring the national economy back? You want to see that market fall through the cellar, just let New York State declare bankruptcy, Michigan, Illinois, California declare bankruptcy. You will see a collapse of the national economy. That’s just dumb.”

Reports are showing that the $350 billion intended to help small businesses get through the crisis has almost entirely gone to big, profitable businesses and entities with close ties to banks. (See: Banks Gave Richest Clients ‘Concierge Treatment’ for Pandemic Aid)

The National Governors Association, a bipartisan group of governors from around the country, wrote federal officials this week pleading for $500 billion to help them make up for lost tax revenues during what they called “the most dramatic contraction of the U.S. economy since World War II.”

None of the four stimulus bills that have passed the Senate, amounting to trillions of dollars of funding, have provided any aid to states hardest hit by the virus. As it happened, these happen to be Democratic states – New York, which accounts for almost one-third of all coronavirus cases and deaths; New Jersey, Michigan, Illinois and California.

Republicans have been gleeful at sending billions to corporations and well-connected, able to skirt whatever oversight and provisions the Democrats had tried to impose (Trump said he would take the reporting requirements as a suggestion and promptly fired the Inspector General), balked at expanding unemployment assistance, and reneged on promises to help states now billions in the red because of the expenses of maintaining services as revenues have all but dried up with the lock-down of all but essential work.

Mimicking his obstruction to Obama’s recovery when refused to allocate enough money for the Recovery Act, McConnell has been content to see the budget deficit rise by $3 trillion (on top of the $1 trillion Trump added even as the economy boomed, because of the Republican tax scam) as long as it could be steered to friendly industries and donors, now  expressed glee to let blue states go bankrupt.

“I think this whole business of additional assistance for state and local governments needs to be thoroughly evaluated,” McConnell said in an interview with the conservative radio host Hugh Hewitt. “There’s not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations.”

Speaker Nancy Pelosi has consistently asserted that future stimulus bills would send aid to states and localities, but McConnell is now signaling that now that they have gotten four stimulus bills amounting to a slush fund with little oversight and accountability, they will be unwilling to provide direct help to states. All of a sudden, they are concerned about rising debt. (Reminder: Republicans shut down government and threatened to refuse to raise the debt ceiling during Obama unless Obama would rescind Obamacare from the budget.)

Once this last stimulus bill passes the House, as is expected, Democrats will lose all leverage to get aid to states, localities, hospitals, workers and the unemployed.

Meanwhile, Cuomo reported on the preliminary results of the state’s first statewide survey intended to determine what percentage of the population has antibodies after being exposed to the infection.

The preliminary results suggest that 13.6% of the state has been infected (and now has antibodies), with the greatest proportion downstate: 21.2% of people in New York City, 16.7% of Long Island, 11.7% of Westchester/Rockland and 3.6% of the rest of the state. The 3,000 in the sample were randomly surveyed in grocery stores and box-stores – in other words, people who were out and about.

Based on that infection rate, it would suggest that 2.7 million New Yorkers have been infected. If that were true, the 15,500 fatalities would suggest a death rate of 0.5%. However, Cuomo stressed that the fatalities counted were only those that took place in hospitals and nursing homes, but do not include those who died at home.

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