January 19, 2021
ICYMI: Assessing the Biden COVID-19 Proposal
Last week President-elect Joe Biden released his $1.9 trillion proposal aimed at combatting the economic fallout of the pandemic. In today’s Daily Dish, AAF President Douglas Holtz-Eakin assesses the proposal relative to the economic problem it is intended to address.
The first thing to note is that (the proposal’s cost) is completely out of proportion to the economic problem. Why does it take $1.9 trillion to solve a $150 billion problem?
The bottom line is that the Biden proposal is inconsistent with the current and projected strength of the economy, ignores economic support that is in the pipeline, spends over a trillion on problems that the vaccination program is intended to solve, and contains numerous extraneous proposals. Any legislative compromise that will pass Congress will have to be much better designed.