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Republicans sharply divided over timeline for reopening economy | TheHill – The Hill

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Support is building among Republicans for reopening the economy sooner rather than later, but not all GOP lawmakers are on the same page.

Some conservatives are pushing more aggressive timelines while some moderates adopting a more cautious approach.

Republicans are wrestling with the looming threat of a second wave of coronavirus infections and the more immediate reality of rising unemployment, with 4.4 million more Americans applying for jobless benefits last week.

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Senate Majority Leader Mitch McConnellAddison (Mitch) Mitchell McConnellCoronavirus culture war over reopening economy hits Capitol Hill Overnight Health Care: Fauci says US needs to ‘significantly ramp up’ testing | Nearly 3 million New Yorkers may have virus antibodies | Trump escalates WHO fight What you need to know today on the coronavirus: House passes huge funding bill MORE (R-Ky.), Sen. Pat ToomeyPatrick (Pat) Joseph ToomeyGOP senators push for quick, partial reopening of economy NSA improperly collected US phone records in October, new documents show Overnight Defense: Pick for South Korean envoy splits with Trump on nuclear threat | McCain blasts move to suspend Korean military exercises | White House defends Trump salute of North Korean general MORE (R-Pa.) and Sen. Ted CruzRafael (Ted) Edward CruzMcConnell sparks bipartisan backlash with state bankruptcy remarks Trump seizes on economic crisis to push green card ban Trump immigration vow stirs serious blowback MORE (R-Texas) are leading the push for state economies to open quickly so that businesses can resume operations and furloughed workers can get off unemployment. 

Those senators, however, aren’t aligning themselves with Georgia Gov. Brian Kemp (R)  and his abrupt decision to reopen gyms, hair and nail salons, bowling alleys, tattoo parlors and massage parlors starting Friday.

Trump on Wednesday said he told Kemp that he “strongly” disagreed with the governor’s timeline. The president went after the governor again at Thursday’s White House press briefing.

“I’m not happy about it, and I’m not happy about Brian Kemp,” Trump said, noting that Kemp’s decision is in violation of federal guidelines. “I told him that. I said, ‘You’re not in the guidelines but I’m letting you make your own decision. I don’t want this thing to flair up because you’re deciding to do something that is not in the guidelines.’”

Georgia had reported more than 21,000 cases of coronavirus and 871 deaths as of Thursday. 

Meanwhile, GOP moderates such as Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderUnion leader asks Pelosi, Schumer to spike ‘surprise’ billing legislation McConnell: Governors should begin reopening states House prepares to vote on coronavirus aid package as soon as Wednesday MORE (Tenn.) and Susan CollinsSusan Margaret CollinsDemocratic group reserves million in TV ads against McConnell The partisan divide on crisis aid Democrats gain new momentum in fight for Senate majority MORE (Maine) are urging caution and for policymakers to pay close attention to the recommendations of public health experts, who are more focused on preventing a second wave of infections than getting the economy back on track.

Alexander, who isn’t seeking reelection, says people shouldn’t go back to work until health experts have a better sense of who’s infected and who needs to be quarantined. 

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“I don’t think Tennesseans and Americans want to go back to work, back to school, unless we know whether we have the virus or the people who have it have been isolated. I’m focused on a new technology to produce tens of millions of diagnostic tests that’ll be ready this summer,” Alexander told News 4 Nashville this week.

He said new testing and treatments are needed, and the process for reopening the economy needs to be methodical. 

Alexander said he supports Tennessee Gov. Bill Lee’s (R) decision to allow a “Safer at Home” order expire at the end of the month but he says it’s too soon to allow kids to return to school without more testing.

“So for phase one, we have enough tests for people who are sick. But for going back to school, I don’t think we do, and we’re going to need a new technology to do it,” he said Wednesday on Fox Business. 

Collins, who is one of the most vulnerable senators up for reelection this year, said Maine doesn’t have enough resources to conduct the testing she thinks is necessary to reopen the state economy.

“Widespread testing will be essential for helping medical professionals determine when it is safe to reopen the economy and for giving people the confidence to go back to school, sporting events, and other public forums,” Collins said in a statement Wednesday. 

She added that increased testing should be a “joint effort,” with the federal government playing “the leading role.”

“States like Maine simply lack the resources to conduct the necessary number of tests on their own. We need to act now to scale up production,” she said. 

Sen. Mitt RomneyWillard (Mitt) Mitt RomneyRomney, Sinema request CDC develop real-time reporting method: US is ‘behind the curve’ Throw the GOP’s Benghazi playbook at Trump’s catastrophic coronavirus response Trump says exclusion of Romney from task force shows he’s still holding a grudge MORE (Utah), another leading GOP moderate, has been in touch with Utah Gov. Gary Herbert (R) and other state and local officials but has let them handle the decision-making process.

Some Republicans, such as Sen. Bill CassidyWilliam (Bill) Morgan CassidyMcConnell sparks bipartisan backlash with state bankruptcy remarks State governments face financial abyss with coronavirus Principles for the coming federal education bailout MORE (La.), a doctor, agree there needs to be a dramatic increase in testing before state economies are reopened. He is proposing hundreds of billions of dollars in additional federal aid to states to cushion the economic blow of keeping businesses closed.

Cassidy has expressed concern about “the financial health” of the country, which he said is getting “pummeled.” 

But he is leery of reopening the economy along the guidelines unveiled last week by the Trump administration without increased testing.

“I would like to have, in conjunction with this, though, widespread testing and knowing who is positive, who’s not. If you are at risk and you’re not immune, then by golly you better take real strong precautions. If you are immune and you are no increased particular risk, you have a lot more freedom,” he said on “Full Court Press” with Greta Van Susteren.

A spokesperson for Cassidy said the Louisiana senator “believes in a more targeted approach” than what Kemp is advocating in Georgia, adding that Cassidy thinks “different states will have different approaches.”

“If the CDC were using the testing and contact tracing he is calling for, then it could analyze not just states, but cities or even neighborhoods to evaluate the risk of an outbreak in specific areas,” the aide added. 

Cassidy is also pushing a bipartisan plan to set up a $500 billion fund for hard-hit states, a plan he pitched during a Thursday conference call with colleagues.

Other Senate Republicans, however, are not fond of sending more money to cash-strapped state and local governments, especially New York, the home state of Senate Democratic Leader Charles SchumerCharles (Chuck) Ellis SchumerPeople over politics on PPP funding Schumer says he’s focused on job when asked about possible Ocasio-Cortez primary challenge Treasury secretary, Democratic leaders ‘hopeful’ for agreement on coronavirus package MORE.

McConnell on Wednesday said he would be in favor of allowing some states to declare bankruptcy if they face irrecoverable fiscal shortfalls. That comment drew bipartisan backlash, particularly from Republicans like Maryland Gov. Larry Hogan. 

Senate GOP aides acknowledge there are conflicting views within the GOP conference over how to proceed. 

“Everybody will have their own position. Everyone will be reliant on what their state does. We will trust governors to make decisions that are based on whatever their needs are,” said a Senate GOP aide after Republican senators held a conference call Thursday.

“I think that most Republicans would like the economy to be open sooner rather than later. But we’re not going to come out with a unified Republican plan,” said the aide.

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Many Senate Republicans are pushing for their states to start loosening restrictions on businesses immediately.

Toomey, who last week called the economic lockdown “draconian,” released a plan Thursday calling for two-thirds of Pennsylvania to resume some economic activities.

He argued that many hospitals, especially in central and western Pennsylvania are at low capacity.

He has introduced a three-phase plan to reopen Pennsylvania, which has had more than 37,000 coronavirus cases.

Phase one would allow businesses to open if they can adopt social distancing and hygiene protocols and if they’re located in counties with declining or limited coronavirus cases.

The second phase would allow higher-trafficked establishments such as restaurants, bars and gyms to open with proper social distancing and hygiene protocols and allow schools to resume under the supervision of state and school districts. 

The final phase would relax restrictions on restaurants, bars and gyms and allow entertainment venues like theaters and concert halls to begin reopening. The third phase would depend on increased testing capacity and the development of effective therapies. 

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Other Republicans, however, have voiced support for a more aggressive timeline.

McConnell said he is urging Kentucky Gov. Andy Beshear (D) to begin allowing businesses to reopen.

“The ultimate solution to this is to get the economy back up and running. I’m encouraging our governor, for example, and he’s already doing it, to begin to make steps in the direction of opening up the economy,” the GOP leader told Fox News. 

Cruz has been at the forefront of calling for workers to be allowed to return to their jobs. 

“If we continue shelter-in-place, that’s going to be devastating for the economy,” Cruz told the Temple Chamber of Commerce on Tuesday. “For young healthy people, it makes sense to go back to work.”

The Texas conservative said the health quarantines have accomplished their goal in making “meaningful progress in flattening the curve and slowing the rate of transmission.”

Sen. James LankfordJames Paul LankfordGOP senator warns Trump against sidelining watchdogs GOP senators press Trump to cooperate with watchdogs following shake-up Former Sen. Tom Coburn dies at 72 MORE (R-Okla.) has echoed the argument that social-distancing and quarantine guidelines have kept the virus in check enough to allow businesses to start reopening.

“What we’ve talked about all along, flattening the curve and limiting the spread — that has occurred. We’ve significantly flattened the curve in Oklahoma and several other states,” he told Fox 25 in Oklahoma City.

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Economy

Canadian economy starts the year on a rebound with 0.6 per cent growth in January – CBC.ca

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The Canadian economy grew 0.6 per cent in January, the fastest growth rate in a year, while the economy likely expanded 0.4 per cent in February, Statistics Canada said Thursday.

The rate was higher than forecasted by economists, who were expecting GDP growth of 0.4 per cent in the month. December GDP was revised to a 0.1 per cent contraction from zero growth initially reported.

January’s rise, the fastest since the 0.7 per cent growth in January 2023, was helped by a rebound in educational services as public sector strikes ended in Quebec, Statistics Canada said.

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WATCH | The Canadian economy grew more than expected in January: 

Canada’s GDP increased 0.6% in January

41 minutes ago

Duration 2:20

The Canadian economy grew 0.6 per cent in January, the fastest growth rate in a year, while the economy likely expanded 0.4 per cent in February, Statistics Canada says.

“The more surprising news today was the advance estimate for February,” which suggested that underlying momentum in the economy accelerated further that month, wrote CIBC senior economist Andrew Grantham in a note.

Thursday’s data shows the Canadian economy started 2024 on a strong note after growth stalled in the second half of last year. GDP was flat or negative on a monthly basis in four of the last six months of 2023.

More time for BoC to assess

The strong rebound could allow the Bank of Canada more time to assess whether inflation is slowing sufficiently without risking a severe downturn, though the central bank has said it does not want to stay on hold longer than needed.

Because recent inflation figures have come in below the central bank’s expectations, “it appears that much of the growth we are seeing is coming from an easing of supply constraints rather than necessarily a pick-up in underlying demand,” wrote Grantham.

“As a result, we still see scope for a gradual reduction in interest rates starting in June.”

WATCH | Bank of Canada left interest rate unchanged earlier this month: 

Bank of Canada leaves interest rate unchanged, says it’s too soon to cut

22 days ago

Duration 1:56

The Bank of Canada held its key interest rate at 5 per cent on Wednesday, with governor Tiff Macklem saying it was too soon for cuts. CBC News speaks with an economist and a couple who might be forced to sell their home if interest rates don’t come down.

The central bank has maintained its key policy rate at a 22-year high of five per cent since July, but BoC governors in March agreed that conditions for rate cuts should materialize this year if the economy evolves in line with its projections.

The bank in January forecast a growth rate of 0.5 per cent in the first quarter, and Thursday’s data keeps the economy on a path of small growth in the first three months of 2024. The BoC will release new projections along with its rate announcement on April 10.

Growth in 18 out of 20 sectors

Growth in January was broad-based, with 18 of 20 sectors increasing in the month, StatsCan said. The agency said that real estate and the rental and leasing sectors grew for the third consecutive month, as activity at the offices of real estate agents and brokers drove the gain in January.

Overall, services-producing industries grew 0.7 per cent, while the goods-producing sector expanded 0.2 per cent.

In a preliminary estimate for February, StatsCan said GDP was likely up 0.4 per cent, helped by mining, quarrying, oil and gas extraction, manufacturing and the finance and insurance industries.

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Economy

Yellen Sounds Alarm on China ‘Global Domination’ Industrial Push – Bloomberg

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US Treasury Secretary Janet Yellen slammed China’s use of subsidies to give its manufacturers in key new industries a competitive advantage, at the cost of distorting the global economy, and said she plans to press China on the issue in an upcoming visit.

“There is no country in the world that subsidizes its preferred, or priority, industries as heavily as China does,” Yellen said in an interview with MSNBC Wednesday — highlighting “massive” aid to electric-car, battery and solar producers. “China’s desire is to really have global domination of these industries.”

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Opinion: The future economy will suffer if Canada axes the carbon tax – The Globe and Mail

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Open this photo in gallery:

Poilievre holds a press conference regarding his “Axe the Tax” message from the roof a parking garage in St. John’s on Oct.27, 2023.Paul Daly/The Canadian Press

Kevin Yin is a contributing columnist for The Globe and Mail and an economics doctoral student at the University of California, Berkeley.

The carbon tax is the single most effective climate policy that Canada has. But the tax is also an important industrial strategy, one that bets correctly on the growing need for greener energy globally and the fact that upstart Canadian companies must rise to meet these needs.

That is why it is such a shame our leaders are sacrificing it for political gains.

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The fact that carbon taxes address a key market failure in the energy industry – polluters are not incentivized to consider the broader societal costs of their pollution – is so well understood by economists that an undergraduate could explain its merits. Experts agree on the effectiveness of the policy for reducing emissions almost as much as they agree on climate change itself.

It is not just that pollution is bad for us. That a patchwork of policies supporting clean industries is proliferating across the United States, China and the European Union means that Canada needs its own hospitable ecosystem for clean-energy companies to set up shop and eventually compete abroad. The earlier we nurture such industries, the more benefits our energy and adjacent sectors can reap down the line.

But with high fixed costs of entry and non-negligible technological hurdles, domestic clean energy is still at a significant disadvantage relative to fossil fuels.

A nuclear energy company considering a reactor project in Canada, for example, must contend with the fact that the upfront investments are enormous, and they may not pay off for years, while incumbent oil and gas firms benefit from low fixed costs, faster economies of scale and established technology.

The carbon tax cannot address these problems on its own, but it does help level the playing field by encouraging demand and capital to flow toward where we need it most. Comparable policies like green subsidies are also useful, but second-best; they weaken the government’s balance sheet and in certain cases can even make emissions worse.

Unfortunately, these arguments hold little sway for Pierre Poilievre’s Conservatives, who called for a vote of no-confidence on the dubious basis that the carbon tax is driving the cost-of-living crisis. Nor is it of much consequence to provincial leaders, who have fought the federal government hard on implementing the tax.

Not only is this attack a misleading characterization of the tax’s impact, it is also a deeply political gambit. Most expected the vote to fail. Yet by centering the next election on the carbon tax debate, Mr. Poilievre is hedging against the possibility of a new Liberal candidate, one who lacks the Trudeau baggage but still holds the line on the tax.

With the reality of inflation, a housing crisis and a general atmosphere of Trudeau-exhaustion, Mr. Poilievre has plenty of ammunition for an election campaign that does not leave our climate and our clean industries at risk. The temptation to do what is popular is ever-present in politics. Leadership is knowing when not to.

Nor are the Liberals innocent on this front. The Trudeau government deserves credit for pushing the tax through in the first place, and for structuring it as revenue-neutral. But the government’s attempt to woo Atlantic voters with the heating oil exemption has eroded its credibility and opened a vulnerable flank for Conservative attacks.

Thus, Canadian businesses are faced with the possibility of a Conservative government which has promised to eliminate the tax altogether. This kind of uncertainty is a treacherous environment for nascent companies and existing companies on the precipice of investing billions of dollars in clean tech and processes, under the expectation that demand for their fossil fuel counterparts are being kept at bay.

The tax alone is not enough; the government and opposition need to show the private sector that it can be consistent about this new policy regime long enough for these green investments to pay off. Otherwise, innovation in these much-needed technologies will remain stagnant in Canada, and markets for clean energy will be dominated by our more forward-thinking competitors.

A carbon tax is not a panacea for our climate woes, but it is central to any attempt to protect a rapidly warming planet and to develop the right businesses for that future. We can only hope that the next generation of Canadian leaders will have a little more vision.

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