Yesterday, President Obama’s former “car czar” Steve Rattner appeared on MSNBC’s “Morning Joe” to discuss the Democrats’ massive stimulus bill and even he expressed concerns about the size and scope of their package.
After Joe Scarborough explained that the CBO expects our economy to grow 3.7% this year even without Democrats’ legislation, Rattner pointed out that we are beginning to see some concern about inflation due to the amount of stimulus that has already been enacted. He noted that during the financial crisis of 2008-2009, the U.S. government put around $2 trillion into the U.S. economy, while we have already authorized about $4 trillion in spending for the same type of rescue today. Check out the interview below:
STEVE RATTNER: “There are beginning to be some concerns about inflation…The package is huge. And just to put it into some kind of context, in 2008-2009 we put about $2 trillion into the economy to rescue ourselves from the great financial crisis. We have already authorize $4 trillion for the same type of resuce, and this bill would about roughly, as you say, $1.9 trillion or $2 trillion on top of that. So a package that’s roughly three times the size of what we did during the great financial crisis. We also, by the way, still have about $1 trillion from the $4 trillion that’s already been authorized that hasn’t been spent yet. So, it’s a huge amount of money and it does run the risk of putting more money into the economy than it needs at the moment…But all in all, the more you look at this, the bigger and a little bit scarier it starts to get.”
It’s also important to note that while the previous legislation that pumped $4 trillion into the economy to respond this crisis was bipartisan, Democrats are now working to ram this legislation through unilaterally. They have not accepted commonsense amendments from Republicans and have opted to focus more on their partisan priorities – like advancing a job-destroying minimum wage hike – instead of working to craft this bill in a responsible way.