The American Rescue Plan Shows The Limits Of Government Spen

The American Rescue Plan Shows The Limits Of Government Spending. What Will Common-Good Conservatives Learn?


DREW ANGERER/POOL/AFP via Getty Images)
May 15, 2021
8:48 PM ET
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Many conservatives argue that the American Rescue Plan (ARP) hindered the post-pandemic economic recovery by overspending on unemployment and contributing to inflation.
The $1.9 trillion package included a massive expansion of unemployment benefits, which encouraged many workers to stay home. It may also contribute to moderate levels of inflation, which happens when new cash rapidly enters the economy. Common-good conservatives, who are less skeptical of government spending than other Republicans, are proposing more targeted legislation that they argue would not have as many negative effects as the ARP.
Many congressional Republicans and economists cite the ARP’s $300 unemployment benefit extension as a key cause of April’s poor jobs numbers. As a result, 15 states have announced that they will not offer the expanded unemployment to their residents, and more are expected to follow suit. Even some Democrats have tacitly admitted that expansive unemployment benefits may discourage work.

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