Statement: American Rescue Plan Act Is Strong Step in Right Direction, More Public Investment Is Required to Fix Our Broken Economy

ProsperUS: “While passing the American Rescue Plan Act is a much-needed down payment on a full economic recovery, it is only a down payment and public investment cannot end there. We must quickly turn to the critical task of building a stronger, more sustainable economy that works for all of us through more equitable public investment.”

“Not only would it be a political mistake for any politician to declare ‘mission accomplished’ while so many workers and families continue to struggle, but if these flawed arguments win the day, our economy will take far longer than needed to recover from this crisis. We cannot return to the frail and fragile pre-pandemic economy, and January 2020 should not be the benchmark for economic recovery.”

Washington, DC – Today, ProsperUS, a coalition of more than 75 major progressive labor, grassroots, movement, faith-based, and policy organizations at the state, local, and national levels, released the following statement in response to President Joe Biden signing the American Rescue Plan Act into law:

“President Biden and Congressional Democrats have taken a strong step forward toward national recovery with the signing of the American Rescue Plan. It is an historic bill to meet an historic crisis: cutting child poverty in half, extending unemployment insurance, sending money to state and local governments to keep people safe and employed, billions for Native communities, help for Black farmers, and more to help workers, families, and communities weather this recession and stabilize our economy.

“This critical step cannot be the last one: the COVID crisis highlighted and exacerbated the major problems with our fragile, unequal economy but it didn’t cause them. Much more needs to be done. Now that American Rescue Plan is signed, we cannot go back to using outdated, debunked talking points about the deficit and debt to justify disinvestment and government inaction on other economic priorities.  Not only would it be a political mistake for any elected official to declare ‘mission accomplished’ while so many workers and families continue to struggle, but if these flawed arguments win the day, we will repeat the mistakes of the Great Recession: leaving millions, particularly Black, brown, and other marginalized people, out of the recovery and ensuring the recession lasts longer and further cements existing inequities. 

"The economic consensus is clear: what’s best for families, workers, and communities is what’s best for the economy. Let’s learn from our previous mistakes, not repeat them. The pain of the Great Recession lasted far longer than necessary, and hit Black and brown families the hardest—too many still hadn’t recovered when the COVID recession hit. The best hope for the workers, families, and communities that make up our economy is massive public investment to create jobs, raise wages, and lift and keep people out of poverty. We cannot return to the fragile pre-pandemic economy, and January 2020 should not be the benchmark for economic recovery. 

“As President Biden unveils his next steps, including upcoming plans for major public investment, the ProsperUS coalition, economists, and advocates across the country stand together to call on the Biden administration and lawmakers to make the big public investments needed to rebuild and re-imagine our economy so that it truly works for everyone. 

“While passing the American Rescue Plan is a much-needed down payment on a full economic recovery, it is only a down payment and public investment cannot end there. We must quickly turn to the critical task of building a stronger, more sustainable economy that works for all of us through more equitable public investment. We are ready to work with lawmakers and the Administration to deliver the results workers and families need.”

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