Welcome to the Capital Note, a newsletter about business, finance and economics. On the menu today: state-and-local assistance, central bankers tackling climate change, and a look at New York’s near-bankruptcy in 1975.
State-and-local assistance has emerged as the main sticking point in Congress’s negotiations over another round of coronavirus relief. Democrats have requested $500 billion for states and cities as well as an additional $225 billion for public schools, roughly double the amount that Republicans are willing to provide.
Whatever its merits, the Democratic proposal effectively attempts to use pandemic relief as a backdoor bailout for states and cities with Democratic constituencies. Kevin Hassett — a senior advisor to National Review’s Capital Matters and former chairman of the White House Council of Economic Advisors — says assistance on