NEW REPORT: Changing the Course of Recovery: How the American Rescue Plan Saved America
Washington, D.C. – Today the House Budget Committee released a new report highlighting expert testimony and findings from a recent hearing titled, “Changing the Course of Recovery: How the American Rescue Plan Saved America.”
The report outlines how the American Rescue Plan saved thousands of lives, rescued our economy, and marked a turning point in America’s economic recovery from COVID — thanks to the Rescue Plan, America’s economic outlook changed drastically for the better between 2020 and 2021. The report also debunks misleading Republican talking points that blame the Rescue Plan for high inflation.
“Across the board, the data underscores the transformational impact of this historic legislation that helped families nationwide put food on the table, stay in their homes, and avoid economic devastation,” said Chairman Yarmuth. “The American Rescue Plan powered a record-breaking recovery, helped state and local governments avoid massive layoffs, and enabled the U.S. to recover more quickly than our peer nations. While challenges stemming from Russia’s war in Ukraine and persistent supply chain issues remain, it is clear that the U.S. is in a better place to face these economic headwinds because of the American Rescue Plan.”
“Most economists of all institutions and of all stripes were expecting a very prolonged, and painful, and difficult recovery before that fiscal support was provided,” said Dr. Julia Coronado, President and Founder of MacroPolicy Perspectives and a witness at the hearing. “A strong labor market and fiscal support has meant a broader based and more inclusive recovery.”
“ARPA local government grants have given all cities, towns, and villages in our nation, the ability to be part of a national economic recovery from bottom up — starting with our hardest hit residents,” said Mayor Vince Williams, Mayor of Union City, Georgia, and President of the National League of Cities. “It’s not like past efforts, when decisions were made in a federal office far away from where problems truly happened.”
“Over the last 80 years or more, it might be difficult to think of a single piece of pre-pandemic legislation that’s more effective than the Rescue Plan at preventing poverty,” said Sharon Parrott, President of the Center on Budget and Policy Priorities. “We saw that a timely, robust fiscal policy response can greatly speed and strengthen an economic recovery. Relief efforts during the pandemic spurred a remarkable recovery that made the COVID-19 recession the shortest on record, and brought the unemployment rate — which peaked at 14.7 percent in April 2020 — down to 3.6 percent today.”
The full report can be found here and a PDF of report can be found here.
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