With the Senate passing President Joe Biden's $1.9 trillion COVID "stimulus" bill along party lines, the ultimate success of the legislation is all but assured.
We've discussed at length how much pork barrel spending is in the bill, but now economists are warning of a new threat posed by the bill's irresponsible spending: inflation.
The country doesn't need $1.9 trillion. We're on track for a full economic recovery, and the rates of COVID-19 infections, hospitalizations, and deaths are falling dramatically. Injecting so much money into the economy could increase inflation beyond what we're able to control and lead to the destabilization of the American dollar.
But don't take our word for it. Larry Summers was the Obama administration’s director of the National Economic Council. He's no Republican, but even he admitted in a recent op-ed that Biden's plan is a mistake.
“There is a chance that macroeconomic stimulus on a scale closer to World War II levels than normal recession levels will set off inflationary pressures of a kind we have not seen in a generation, with consequences for the value of the dollar and financial stability,” he wrote.
He's not the only one. Another Obama administration official, Steven Rattner, wrote in the New York Times that Biden's plan will result in disaster.
"So far, the wary eye that I have kept on prices for four decades has been unnecessary," he wrote. "But now, with Congress poised to approve an additional $1.9 trillion in spending through the American Rescue Plan Act, I’m worrying again."
Signs of inflation are already apparent, Rattner warns, but Biden is moving ahead with his plan to inject another $1.9 trillion into the economy.
“Some commentators, and White House advisers, dismiss inflation fears on the grounds that the economy has fundamentally changed since the 1970s. But let’s not be so blasé about how hard it would be to put that tiger back in its cage. Forty years ago, curbing the painful hike in prices took the Fed raising interest rates to 20 percent, forcing the economy into a brutal recession. … Congress is on the verge of injecting an additional $1.9 trillion into an economy that has already received more than $4 trillion in boosts from Washington. According to several estimates, the measure’s spending far exceeds the extent of the shortfall in economic output caused by the pandemic.”
Rattner outlines several ways the bill should be amended, including cutting pork and providing more targeted assistance to Americans in need.
"Wasting precious dollars that could be better spent can’t possibly be worth the risk of igniting high inflation again," he concludes.
Right now, there is little the American people can do to avert this crisis. But we can make sure our children and grandchildren don't have to suffer through a recession caused by federal overreach.
An Article V Convention of States is called and controlled by the states and has the power to propose constitutional amendments. These amendments can force Congress to be fiscally responsible with mandates to balance the budget, cut spending, and cap taxes.
But even more importantly, these amendments can limit the power, scope, and jurisdiction of the federal government. Washington is free to spend so much of our hard-earned money because the Supreme Court has given them jurisdiction over virtually every area of American life. Whether it's welfare, the economy, business, education, the environment, or energy, Congress can spend money on anything it sees fit.
With constitutional amendments that limit this jurisdiction, Congress would only be allowed to spend money on a small, narrowly tailored set of subjects. All other subjects would be left to the states, where We the People have a real voice in government.
We must force Congress back into its constitutional box. If we don't, each "crisis" will be met with another trillion-dollar "stimulus" bill, and our country will sink further into financial ruin.
To join the team calling for a Convention of States in your state, sign the petition below.
