There’s an ironic similarity between the Biden administration’s COVID-19 relief bill and the Trump administration’s 2017 tax cuts. Both cost $1.9 trillion.
That’s why it’s difficult to take seriously the complaints by congressional Republicans about the package’s size.
Giving tax breaks to well-off corporations and individuals during an economic expansion is OK, but spending money in the midst of an economic crisis is fiscally irresponsible?
It’s not just hypocritical. It’s bad economics. It’s also a textbook example of the maxim that those who fail to learn from history are doomed to repeat it.
The sluggishness of the recovery after the 2008-10 Great Recession was largely due to the prolonged downturn in state and local government spending. Unlike the federal government, states and cities cannot run deficits when tax receipts go down sharply and recover slowly.
They were forced to lay off hundreds of thousands of employees, including an estimated 50,000