DALLAS  - “You never want a serious crisis to go to waste,” said former White House chief of staff Rahm Emanuel. U.S. lawmakers might be taking that too much to heart as they cross the T’s in a $2 trillion-odd economic stimulus package. Some of the causes that are holding up an agreement are noble, but as was proved in the wake of the 2008 financial crisis, broader fixes can wait.

House Democrats are pushing a number of elements that are unrelated to the virus crisis. They want to make cutting carbon emissions a condition for the airline industry tapping into as much as $60 billion in grants and loans. It’s not all stick, either: They’re offering $1 billion to help companies switch to more fuel-efficient aircraft. Then there is the oversight on over $500 billion in loans for companies and states administered by the Treasury. It took a while for lawmakers to agree on more oversight to the loans, but the devil is still in the details.

The U.S. Postal Service is receiving a chunk of change it undoubtedly needs to get through the crisis, but forgiving its debt doesn’t belong in the current debate. Similarly, putting student-loan repayments on hold is a more pressing need than reducing how much each borrower owes.

Adding strings to taxpayer-funded loans and grants, like ensuring that as many employees as possible still get their pay and benefits as companies get their perks is a necessary part of the coronavirus bailout. So is insisting that companies put buybacks, executive pay and even dividends on hold for the duration.

After Congress bailed out the banking sector during the 2008 financial crisis, lawmakers made retroactive changes in the ensuing months. And the House and Senate followed up with a more comprehensive overhaul with the Dodd-Frank Act in 2010 that helped create a more resilient industry. It wasn’t a perfect fix – bank executives still get paid more than handsomely, and shareholders continue to receive goodies. But banks’ widespread opposition to the curbs on their balance sheets and trading books show that the rules found their mark.

Lawmakers have plenty of time to bicker about the future. For now, perfect shouldn’t get in the way of good enough.

On Twitter https://twitter.com/thereallsl

 

CONTEXT NEWS

- Stocks rose in early trading in U.S. markets on March 24 on hopes that Congress is getting closer to passing a stimulus bill worth as much as $2 trillion.

- On March 23 the U.S. Senate failed to muster 60 votes, the necessary amount to move forward the stimulus plan, for the second time in two days.

- The House bill would provide up to $2.5 trillion in loans and other aid. Airlines would receive up to $37 billion in grants and $21 billion in loans that would be interest-free for the first year, though would also require those using the money to offset and then reduce carbon emissions.

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<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Wall St bounces on hopes of $2 trillion stimulus, Boeing boost urn:newsml:reuters.com:*:nL4N2BH4CU House Democrats would give airlines, contractors $40 billion bailout urn:newsml:reuters.com:*:nL1N2BG1SU BREAKINGVIEWS-America could use a UK-style wage injection urn:newsml:reuters.com:*:nL1N2BG1RA BREAKINGVIEWS-Corporate bailouts should be quick, big and wide urn:newsml:reuters.com:*:nL8N2BD34M BREAKINGVIEWS-U.S. virus bailouts require good instructions urn:newsml:reuters.com:*:nL1N2B40SK BREAKINGVIEWS-Delta’s climate journey needs better flight plan urn:newsml:reuters.com:*:nL1N2AE0N2

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by John Foley and Amanda Gomez) ((Lauren.SilvaLaughlin@thomsonreuters.com))