Fiscal Policy in the US: Build Back Better

(Senate Democrats Home, 2/1/21)
Top Democrats Cory Booker, Debbie Stabenow, and Chuck Schumer all released positive statements in support of the ARP. These Democrats insist on the need for the ARP to help struggling Americans, and to inject some positive momentum into the economy which is still flagging. The senators agree that the unique challenges faced by the economy today require stimulus to get it back on track.

(USA Today, 3/6/2021)
House Progressive Democrats are upset over the modifications made to the legislation. Some of the changes to the proposed bill range from a federal minimum wage increase to unemployment benefits reduced and limits on aid for state and local government. Due to these changes in the bill some Democrats feel that they shouldn’t vote for the final package anymore.  

(New York Times, 3/6/21)
The unity that Joe Biden promised coming into office did not materialize in the House as Republicans unanimously voted against the American Rescue Plan. Republicans are opposed to the Bill because they see it as a Progressive wish list disguised as a coronavirus relief bill. Republicans also touted their ability to create bipartisan legislature while Trump was in office.

(Washington Post, 3/16/21)
Republican state Attorney Generals threatened to take action over the coronavirus stimulus law because it imposes “unprecedented and unconstitutional” limits on State’s ability to lower taxes. GOP leaders say that the law’s vague wording threatens to interfere with states who are in good financial situations who sought to provide tax breaks with or without the Covid relief funds. The bill doesn’t allow the relief money to be used for tax breaks, and all losses in state revenue will have to be repaid.

(Brookings Institute, 1/28/21)
The Brookings institute estimates the macroeconomic impacts of the American Rescue Plan would grow the American economy. Evidence supports that the plan would create 4% growth in GDP by end of 2021. The Brookings Institute goes on to propose that GDP would stay below pre pandemic levels for several years without additional stimulus.

(House Committee on the Budget, 2/25/21)
Description of several different Economists' and experts' response to the Bill, all of them in favor of it. This source gives a good overview of economists' reasons for supporting the Bill.

(Economic Policy Institute, 3/10/21)
The passage of the American Rescue Plan is a moment of great progress in US economic policy. Compared to the response of past recessions, this Plan does a much better job at dressing the needs of the economy. Minor critique of the bill is that the relief provisions need to be extended in order for a full recovery, and they are disappointed in the lack of a raise to the federal minimum wage. Stating that this was a big opportunity to create an equitable recovery.

(Heritage Foundation, 3/11/21)
The Heritage Foundation is critical of the American Rescue Plan stating that the Bill doesn’t include measures to actually stop the spread of the disease. Continues to say that last year’s coronavirus relief measures have already given states windfall funding well in excess of their projected revenue shortfalls.

(Economic Policy Institute, 3/15/21)
The American Rescue Plan provides much needed funds for local and state Governments. Problems brought to light by the pandemic can now be fixed due to the funds the plan provides. The ARP creates the opportunity to lay the groundwork for new programs and reforms which can be built on in the future. The ARP also provides funds to be flexible in combatting the multitude of expenses related to the pandemic.

(CNET, 2/24/21)
Over 150 CEOs from major companies issued a public letter expressing support for the COVID relief package. The letter said that “more must be done to put the country on a trajectory for a strong, durable recovery.” The letter also said that the American Rescue Plan provides framework for a coordinated public-private effort to overcome the pandemic and move forward with a new era of inclusive growth.

(Partnership for New York City, 2/24/21)
This is the actual letter from over 150 CEOs signing their support for President Biden’s stimulus package. The letter includes signatures from the CEO of Zillow, and SurveyMonkey among others.

(New York Times, 3/7/21)
Responses to the American Rescue Plan varied across Interest Groups. For example the National Farmers Union and Airlines for America praised the bill while the Business Roundtable insisted the bill should have been smaller. The American Hotel and Lodging Association said that a larger bill was necessary.