Updated: March 5, 2021
A new preliminary analysis by the International Monetary Fund has found that President Biden’s American Rescue Plan could boost U.S. economic growth by 5% over three years, the organization’s Chief Economist said today.
Many economists and experts see the administration’s plan as critical to addressing the economic crisis caused by the pandemic.
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Reuters news agency quoted IMF’s Gita Gopinath as saying that the measures in President Biden’s $1.9 trillion proposed package “could add as much as 1.25% to U.S. growth in 2021, when the IMF projects the U.S. economy will expand by 5.1% after a 3.4% contraction in 2020.” It predicts growth of 2.5% in 2022.
Kevin Hassett, a former top economic advisor to President Trump, echoed this in an interview last week in support of the American Rescue Plan, and a Reuters survey of dozens of economists found that over 90% believed that it would “boost the economy significantly.”
Moody’s Analytics, in an independent analysis, similarly found that the Rescue Plan would help create 7.5 million jobs in 2021, double economic growth, and return the U.S. to full employment a full year faster, and the plan has received praise from across the political spectrum – from the U.S. Chamber of Commerce and the Business Roundtable to Senator Sanders and organized labor.
That’s why President Biden is calling on Congress to act urgently to pass his plan so we can combat the economic damage being wrought by COVID-19, get relief and support to the families and communities who have been hit hardest by the pandemic, and ramp up vaccinations, testing, and public health capacity so we can get the virus under control.