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Lack of Consensus in State Government

The global coronavirus pandemic has driven the global economy into a catastrophic nosedive. American financial well-being has been shattered by a slowdown in economic growth and labor market development. The article by Smialek et al. (2020) provides context for the funding challenges in the US and the states, which have become a stumbling block between the two political parties. In particular, a heated debate is being conducted over disagreements between Washington and local authorities, which cannot agree on a structure for replenishing the created budget deficit. The authors of the article summarize politicians’ views on both sides, citing the need to resume economic growth and support vulnerable populations. Thus, the source points to the advisability of the multi-level government’s mutual work for the timely adaptation of the financial sector to an unforeseen economic shock.

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The American economy is in a disastrous recession due to the coronavirus pandemic. In particular, social and business restrictions have forced many companies to shut down completely, and some of them cease operations. Such processes are detrimental to small businesses that go through the stages of bankruptcy due to a lack of earnings. It has been noted that federal economic transformations can be a disaster for vulnerable populations (Smialek et al., 2020). A sharp decline in personal and corporate tax payments, coupled with the need to finance payments for social programs, will lead to long-term economic stagnation. The authorities cannot reach a consensus on budget allocations and the use of the reserve fund. The authors of the article note that Washington is shifting responsibility to local and state authorities for self-financing for crisis measures. On the other hand, governors and other leaders point out a pre-existing hole in the budget and request government funding from the federal court. Thus, misunderstandings and lack of consensus between different-level governments exacerbate the process of coming out of economic stagnation, which can cause a long-term recession in the social segment.

The article’s critical problem is the inability of politicians to make a timely decision regarding the pandemic crisis. It is no secret that the current economic setup is catastrophic and can be compared with the Great Depression and stagnation in 2008. This article exposes the internal structural problems of budget allocation in which even the presence of a reserve fund does not cover the needs of the states. The hundreds of billions of dollars needed may not be enough to meet the population’s demands as their financial capabilities become increasingly vulnerable. Consequently, making timely decisions about the allocation of funds and payment of social programs is a critical issue for both the government and Americans in general.

The initiated change, which must be adopted by the government, will affect a wide range of citizens. Distribution of stimulus check to Americans, whose primary function was to help during the financial crisis, became a well-known fact. From a broader perspective, the population needs to stabilize a situation where even saved jobs can be lost due to new restrictions. The government’s failure to secure long-term funding for social projects raises questions about the new stimulus check. However, experts point out that another wave of aid is impossible due to the lack of funds to pay in the department treasury (Hayes & Collins, 2020). Thus, any budgetary changes primarily affect citizens and their ability to be financially independent.

The New York Times is a trusted source that provides news in over a dozen categories. The relevance and credibility of the resource consist of collecting the opinions of specialists in various fields and creating an analysis based on evidence-based data. For example, the article under study is a synthesis of the positions of representatives of the Republican and Democratic parties that provides a rational conclusion from this information. Consequently, the New York Times provides independent informational publications in which the reader receives data for further self-analysis without bias.

The current pandemic crisis will lead to economic stagnation anyway. The government is the only decision-maker regarding financial allocation and the use of the emergency fund. People were left without work, and even with the stimulus check, they have much less opportunity to lead their healthy lives. Consequently, the colossal sums spent on economic recovery look more justified than ever due to their direct impact on the well-being of the population. Thus, state leaders must communicate and reach consensus with the federal government to save millions of lives.

The American economy is stagnating due to the financial crisis. The federal government and state authorities cannot make a joint decision on the use of the reserve fund and responsibility for paying for social programs. Millions of Americans are suffering from the effects of the crisis, and it is the government that must initiate change. However, the previously allocated several billion dollars are insufficient in the long term, and the new difficulty lies in the actual lack of funds. Thus, the main problem of the article under study is the state dilemma associated with long-term financing of major local and federal programs.

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Hayes, C., & Collins, M. (2020). Many Americans might not get another stimulus check. Here’s where things stand on another COVID-19 bill. USA Today. Web.

Smialek, J., Rappeport, A., & Cochrane, E. (2020). State and local budget pain looms over economy’s future. The New York Times. Web.

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