The solid performance of the American economy, according to U.S. Treasury Secretary Janet Yellen, is proof that President Joe Biden’s $1.9 trillion American Rescue Plan Act was the proper course of action in 2021 to prevent a drawn-out and excruciating recovery from the COVID-19 epidemic.
Yellen stated that the greatest risk at the time “was in going too small” with recovery spending in her speech to the U.S. Conference of Mayors in Washington.
“Many had contended that there was no necessity for this rescue plan. However, I think that our current situation validates the strategy we employed,” Yellen stated in a few quotes from her speech. “Both GDP and inflation are growing at robust rates. Compared to before the epidemic, four million more employment exist.”
She said that for the first time in 50 years, the unemployment rate has been below 4% and that salary improvements have been widely distributed, including among those with lower levels of education and younger age.
In contrast, the financial crisis of 2008–2009 resulted in a difficult, protracted recovery with more unemployment.
“Workers and families faced unemployment and economic hardship for too long, and it created scarring for a generation of American workers,” Yellen stated.