In testimony before the Senate Banking, Housing, and Urban Affairs Committee this morning, AAF President Douglas Holtz-Eakin discusses the size and scope of the American Rescue Plan and its potential impact on the economy.

His central points:

• The architecture of the plan is largely divorced from the roots of the recession and headwinds to the recovery, and – at best – it will be costly, inefficient, and ineffective;
• The scale and composition of the plan is at odds with the stated goals for economic stimulus toward full employment; and
• A large number of the elements of the plan can only be understood as long-standing and permanent political objectives that are inappropriately advertised as a response to COVID-19.