McConnell’s rejection of federal aid for states risks causing a depression, analysts say

Washington Post logoSenate Majority Leader Mitch McConnell (R-Ky.) would rather see states declare bankruptcythan give them federal aid to deal with the economic collapse triggered by the coronaviruspandemic.

That’s a recipe for turning a potentially short recession into a prolonged depression, according to officials and analysts.

The question of whether Congress and the White House should provide relief funding to state and local governments — as the feds have done already for private business — is about to reach a showdown in Washington. Continue reading.