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Republicans said they supported providing more jobless pay for struggling Americans but argued that the costs should be offset with spending cuts elsewhere to avoid adding to rising federal deficits.
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Some Republicans, while supporting disaster assistance, have said that at least some of the cost should be offset by cuts elsewhere in the budget.
The $34 billion measure was the subject of a fierce partisan battle in Congress over whether the cost should be offset with spending cuts or tax increases to avoid enlarging the federal deficit, as Republican opponents demanded.
And Mr. McConnell acknowledged that there would be a continuation of jobless aid for the long-term unemployed, though he reiterated the Republican contention that the cost should be offset with reductions in spending elsewhere.
Pigou argued that negative externalities (costs imposed) should be offset by a tax, while positive externalities should be offset by a subsidy.
In theory, that should be offset by cheaper borrowing costs for banks.
The Bank of England's interest rate setting committee was split in December when two members maintained their view that forecasts of higher wages next year should be offset by higher credit costs.
Commute time should be offset by higher pay or lower living costs, or a better standard of living.
"While we are also reducing our capital markets-related revenue estimates, the bottom-line impact should be offset substantially by lower-than-previously-expected credit costs," he wrote.
The latest dispute revolved around the question of how much, if any, of the cost of disaster assistance should be offset by cuts elsewhere in the federal budget.
The high initial cost of delivering the scheme should be offset by the savings that are projected to accrue from longer-term improved health and educational outcomes.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com