Republicans are fighting to reduce the $1.9 trillion stimulus plan put forward by Joe Biden. I hope the Democrats do not agree. As I see it, there is nothing to lose by going big.
If they go big and the pandemic is curbed and the economy bounces back in a year or two, they will be praised for their actions. If the economy does not recover as much as expected, the stimulus cannot be blamed for being too big and instead it could be argued that it was not big enough. On the other hand, if the stimulus is trimmed back by a lot and the economy does not recover, Biden and tee Democrats will be blamed for going too small.
Republicans are saying that the large stimulus will add to the deficit and ‘overheat’ the economy and cause inflation. But we know that Republican concerns over the deficit are bogus and are always, always, just a way to oppose spending that does not benefit the wealthy. Furthermore both Fed chair Jerome Powell and treasury secretary Janet Yellen (who was Powell’s predecessor as Fed chair) have discounted the danger of inflation and said they have the tools to curb it if it does occur.
So Biden and the Democrats should go big and ignore the ‘sky is falling’ bad faith arguments of the Republicans.