Yet another batch of federal payouts starts in July, giving economists more cause for concern about the avalanche of spending under President Joe Biden.
Biden’s $1.9 trillion “COVID relief” package included an expanded, refundable child tax credit of up to $300 a month per child that will cover 88 percent of the nation’s kids. In July, 39 million families will start getting paid automatically on the 15th of every month.
Progressives tout the provision as an important step in the fight against poverty, but even liberal economists are starting to twitch over the endless federal aid that Biden’s throwing in every direction. No less than Larry Summers fretted in The Washington Post that the administration is courting inflation rates unseen in decades by outright dismissing the possibility that doling out billions in various benefits will have any negative consequences.
Last month already saw the highest rate of inflation in 13 years with prices skyrocketing as people began spending their new “stimulus” checks.
And after a marked downward trend, unemployment also rose last month as would-be workers realized that collecting Biden’s extra unemployment benefits might be easier than rejoining the work force.
Now Biden is pressing Congress to ignore the soaring national debt and approve another $4 trillion-plus in spending for his infrastructure and “families” plans. Let’s hope the moderate Democrats who hold the balance of power realize that the president’s giveaways have already done enough damage.