Slight increases in the rate of inflation in the United States and Europe have triggered financial-market anxieties. Has US President Joe Biden’s administration risked overheating the economy with its $1.9 trillion rescue package and plans for additional spending to invest in infrastructure, job creation, and bolstering American families?
Such concerns are premature, considering the deep uncertainty we still face. We have never before experienced a pandemic-induced downturn featuring a disproportionately steep service-sector recession, unprecedented increases in inequality, and soaring savings rates.
Numerous Republican politicians have been denouncing the relief bill recently passed by Democrats. It’s part of a planned, coordinated, strategy by Republicans to turn public opinion against the bill (75% of the public likes the bill).
“The [Republican National Committee] circulated rapid response emails and put together research documents on the legislation that they blasted out to reporters.”
“Republicans lost credibility on that issue during the Trump years, especially the first couple years when we had the power to do something about it,” said Brendan Steinhauser, a Republican consultant and former campaign manager to Texas Sen. John Cornyn. “There was no interest in doing anything about it. It was just, ‘let’s not even talk about spending or the debt or deficit or anything like that.’”