January 14, 2021
ICYMI: Some “Stimulus” Math
The Biden Administration is beginning to brief Congress on its plan for additional COVID-19 “stimulus” or “relief” funding, and reports indicate the incoming administration is looking for “multiple trillions of dollars.” In today’s Daily Dish, AAF President Douglas Holtz-Eakin calculates the size of the pandemic’s economic damage and the ranges of spending that could offset it, both in terms of gross domestic product and personal income, before drawing some conclusions.
In the end, the debate can be framed in terms of economic output (GDP) and stimulus or personal income and relief. Viewed from either perspective it is clear that the federal government has already done an awful lot to offset the pandemic recession. It is also clear that one could make the case that enough has been done, but also the case that there is the need for more. But it is increasingly difficult to use these policy goals to justify additional trillions of dollars.