There has not been much good economic news lately for working families. Inflation is soaring, consumer confidence is plunging, and Congress is pushing for even more spending and taxes on the economy.
After spending nearly $6 trillion, Congress is now considering a new $3.5 trillion tax and spending plan, in addition to the $1.2 trillion infrastructure bill. Many experts are warning that this new spending will fuel even more inflation and that the proposed tax increases will raise prices even more.
House returns to Washington next week to forge ahead with infrastructure bill, budget plan
The House returns to Washington next week to forge ahead with President Joe Biden’s sprawling economic agenda.
The chamber aims to hold a vote to advance the bipartisan infrastructure bill, Democrats’ $3.5 trillion spending plan and voting rights legislation, followed by passage of a budget resolution that unlocks the reconciliation process.
While Pelosi plans to pass both the Senate-passed infrastructure bill and a plan to expand the social safety net at the same time, centrists in her party are pushing for swift passage of the infrastructure plan.
Pandemic’s $16 Trillion Bill Will Come Due as Debt Surges: Fitch
(Bloomberg) — A blowout in government borrowing since the pandemic began will ultimately require spending cuts and higher taxes to get public finances back on track.
That’s a lesson from economic history highlighted by James McCormack, Fitch’s global head of sovereign ratings, who said that even if austerity is not on the agenda right now, the bill to pay for the pandemic will come due.
Governments around the world have rolled out about $16 trillion worth of fiscal measures to prevent economic collapse during the pandemic, according to the International Monetary Fund, helping to drive the recovery but also leaving war-time era levels of debt.