Rep. McClain: “Was it predictable that the American Rescue Plan would drive inflation so significantly?”

Dr. Doug Holtz Eakin: “Yes. People said so at the time, notably Larry Summers, former Secretary of the Treasury – an outstanding economist. History has given us examples just like the American Rescue Plan. In 1951, the U.S. economy was growing at 10.5 percent – quite rapid growth. Federal spending was increased by about 50 percent – that’s roughly the American Rescue Plan – two trillion on a four trillion base. Inflation jumped by six percentage points that year.”