Forum Overview :: Balance of Power :: Biden’s American Rescue Plan worsened inflation. The question is how much.

[quote name="Vox dot com"][quote]The authors don’t mince words about why they think that is, writing: “Estimates suggest that fiscal support measures designed to counteract the severity of the pandemic’s economic effect may have contributed to this divergence by raising inflation about 3 percentage points by the end of 2021.” That is: <strong>The US did a lot more stimulus than these other countries, and now it’s seeing a lot more core inflation.</strong> And the stimulus that most stands out is Biden’s $1.9 trillion American Rescue Plan — because it was enacted after more than $3 trillion had already been spent to stimulate the economy under Trump, with one big chunk of that being approved just three months prior. “We put gasoline on the fire. That’s basically what the ARP did. It was almost written as if we didn’t just pass a trillion-dollar stimulus in December,” said Goldwein.[/quote][/quote]