Today, Congressman Don Beyer (D-VA), Chair of the U.S. Congress Joint Economic Committee (JEC), released the Democratic response to the 2021 Economic Report of the President (the Report). The JEC is required by law to submit findings and recommendations in response to the Report, which is prepared and released each year by the Council of Economic Advisers (CEA). This year’s report was published by the outgoing Trump administration in January 2021.
In the months since the Report was originally published, President Biden has been sworn into office, the American Rescue Plan has been passed into law and coronavirus vaccinations have become widely available. The JEC’s Democratic response assesses former President Trump’s abject policy failures and the success of the current Congress and administration in building a robust economic recovery. The Democratic response makes the case for public investment in physical infrastructure and the care economy in order to create long-term economic growth and broadly shared prosperity. The U.S. can invest in families and communities without burdening the middle class, through consistent enforcement of the tax code and by asking the wealthy to pay their fair share.
“Former President Trump left office as the first president since World War II to end his presidency with fewer jobs than the day he took office. His economic record is one of the worst in modern U.S. history."
“Throughout his term in office, his administration’s policies harmed middle-class American workers and families, and when the pandemic reached American shores, former President Trump repeatedly downplayed the dangers of the coronavirus and failed to use his powers as president to effectively address the crisis.”
“Spurred by immediate economic relief through the American Rescue Plan and successful vaccination efforts, the United States is recovering from the largest economic shock since the Great Depression: After two quarters of robust GDP growth driven by consumer spending, the U.S. economy has made up the losses of the last 18 months and surpassed the pre-pandemic peak. The labor market is returning to it’s pre-pandemic tightness, and wages are rising, putting more money in the pockets of hardworking Americans.”
“This provides new evidence that investing in people is key to economic growth and offers a roadmap for how long-term investments in physical and human infrastructure can address racial and economic inequality, mitigate the harmful effects of climate change, and increase productivity. We have the capacity to repair our roads, connect communities to broadband, and invest in families if we are willing to consistently enforce the tax code and ask the wealthy and corporations to pay their fair share."
"It is the economically sound thing to do, it is the right thing to do and it will be a legacy we can be proud of.”
The Democratic response to the Report includes five chapters:
- Chapter 1: Creating Shared Prosperity After An Unprecedented Crisis
- Chapter 2: Public Investment Is Key To Future Economic Growth
- Chapter 3: The Care Economy Is Critical Infrastructure
- Chapter 4: America Has The Fiscal Space To Invest For The Future
- Chapter 5: Raising Revenue Through Consistent Tax Enforcement and A Fair Tax Code