THREAD. The $908 billion bipartisan stimulus that Congress is debating right now would give the economy the support it needs. The House and Senate should pass a bill this week if they want to avoid another recession.

My latest Bloomberg column: https://www.bloomberg.com/opinion/articles/2020-12-08/mcconnell-and-pelosi-should-embrace-stimulus-bill?sref=QK42wmXj @bopinion

2/ Democrats are reluctant to support it in large part because it includes protection for employers against lawsuits related to Covid-19. Republicans are reluctant to support it because it would give federal grants to state and local governments.

3/ Each party should accept the elements it opposes. They are politically necessary — and they are sound policies that appropriately address real needs.

4/ With this bipartisan compromise, the odds of the U.S. slipping back into recession this winter are slim. Without it, another recession and increasing unemployment are much more likely.

5/ Democrats are wrong to oppose liability protections for employers. To be as productive as possible — generating revenue and keeping employees on their payrolls — businesses need reasonable assurances that if they make a good-faith effort to follow public-health guidelines...

6/ ...and protect their workers, they will be shielded from frivolous, opportunistic lawsuits in the event that their customers or workers get Covid-19.

7/ These liability protections should be temporary, expiring once a vaccine has been widely distributed. But they should also be strong enough to give businesses confidence.

8/ Of course, businesses that knowingly expose workers to unsafe conditions or are guilty of gross negligence should be held liable. Congress should not extend them blanket immunity.

9/ But many businesses are unsure of what to do in this uncertain and rapidly changing situation, and often hear inconsistent guidance. It is both in their interest and the economy’s to give them leeway and to help keep them running as close to full capacity as possible.

10/ State and local government employment is down 1.3 million jobs since February. Without assistance from the federal government, these layoffs will act as a drag on the recovery for years to come.

11/ We’ve seen this movie before: It took over a decade for state and local employment to recover from the Great Recession, in part due to inadequate federal aid.

12/ Republicans should recognize that states and localities were in the same position as businesses and households when the pandemic hit: unprepared for a once-in-a-century crisis and the economic devastation it wrought.

13/ Congress has replaced portions of household income and small-business revenue. To help the recovery and to keep a lid on unemployment, it should do the same for states and localities.

14/ Leaders in both chambers should ignore members — such as senators Josh Hawley and Bernie Sanders — who seem to want their pursuit of the perfect to be the enemy of the good.

Fin/ With Congress preparing to leave Washington for the holidays later this month, it should pass this compromise while it has the chance. Otherwise, the recovery from the pandemic recession will stall — or reverse itself.

My latest column: https://www.bloomberg.com/opinion/articles/2020-12-08/mcconnell-and-pelosi-should-embrace-stimulus-bill?sref=QK42wmXj @bopinion