With the American Rescue Plan’s two-year anniversary now behind us, this blog post revisits the economic impact of pandemic response policies of the Biden Administration. The economic recovery from the pandemic in the United States has been historic relative to prior episodes with employment recovering to pre-crisis levels much faster than after recent recessions. And while a counterfactual recovery is impossible to observe, data suggests that the actions taken by the Biden Administration meaningfully contributed to the pace of recovery and strength of the labor market. One way to put this rebound in context is relative to recoveries in other advanced economies. Acknowledging that other advanced economies faced different economic shocks—notably, our European partners were more adversely affected by Russia’s war against Ukraine—the evidence shows that the U.S. economic recovery has been quite strong.
Read the full article at: home.treasury.gov