Coronavirus Economic Response: Conservative Deficit Hawks Urge Trump, McConnell To Cut Spending

Top conservative policy advocates have urged President Donald Trump and Senate Majority Leader Mitch McConnell, R-Ky., to curb government spending amid the coronavirus pandemic. A letter from the "Save Our Country Coalition," a collaboration of multiple conservative groups, advises Trump and McConnell to adopt a payroll tax cut and calls government spending “the new virus” affecting the economy.

"To ensure the economic health of our citizens and the financial well-being of our nation now and for years and decades to come, we urge that the multi-trillions of dollars of federal government debt spending in the wake of the CoronaVirus come to a stop," the letter says. "There is no limit to worthy causes, but there is a limit to other people’s money."

The letter was signed by 20 notable conservative leaders, such as Reagan supply-side economist Art Laffer and former Attorney General Ed Meese. Other prominent signatories include Americans for Tax Reform President Grover Norquist and Club For Growth co-founder Stephen Moore.

So far, the federal government has already spent more than $2 trillion to boost the economy amid the ongoing coronavirus pandemic. In May, the Democratic-majority House of Representatives voted to pass the $3 trillion Heroes Act, which Trump and McConnell described as “dead on arrival.”

The White House and lawmakers will likely begin negotiations on another stimulus package in late July. The Trump administration is considering a “back to work” cash bonus, with some officials saying they would look at another round of stimulus checks for Americans.

The Trump administration is also weighing a $1 trillion infrastructure plan to improve roads and bridges, along with funding 5G networks and rural broadband, Bloomberg News reported Tuesday. President Trump has previously tweeted that low-interest rates should prompt the government to implement a “big & bold” infrastructure bill.

In the first quarter of the year, the GDP contracted 4.8% due to the impact of the coronavirus. The economy has shown signs of recovery, however, with 2.5 million jobs unexpectedly added in May and retail sales shooting up 17.7% during that month.