The Daily Did Democrats Make Inflation Worse?
Feb 1, 2022
Ben Casselman, an economic and business reporter for The New York Times, dives into the inflation crisis that's gripping the nation, with prices spiking 7%—the fastest jump in four decades. He analyzes how the Democratic Party's policies, including the American Rescue Plan, may have worsened the situation and discusses the implications for the upcoming midterm elections. The interplay between stimulus spending and supply chain issues is explored, raising questions about political accountability amidst this economic turbulence.
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The Third Stimulus Promise
- In December 2020, Biden promised a larger stimulus package than the $900 billion one passed by Congress.
- This became a key issue in the Georgia Senate runoff elections, with Democrats promising $2,000 checks.
American Rescue Plan Goals
- The American Rescue Plan aimed to end the pandemic, aid struggling individuals, and boost the economy.
- Beyond stimulus checks, it extended unemployment benefits and funded vaccine rollout.
Republican Opposition to Stimulus
- Republicans opposed the stimulus, fearing inflation, arguing that giving more money to an already full economy would just raise prices.
- They believed existing aid was sufficient and worried about unemployment benefits discouraging work.