COVID 19 Economic Policy Brief

Overview – The purpose of the assignment is to apply the May, Can, Should Modle through analysis of a specific economic or Budget Policy

U.S Economic and Budget Policy: The American Rescue Plan Act of 2021

Defining the Problem

During 2020 and 2021 the United States was grappling with the ramifications of the COVID-19 pandemic and its implications for economic growth. In 2020, the United States experience unprecedented business and economic disruption. The country lost millions of jobs, businesses were shutdown, and many Americans lost their lives. Likewise, the pandemic created supply chain disruptions that limited the availability of critical products, equipment, and food items for Americans. All of these factors coalesced to create a worldwide recession that heavily impacted millions of individuals around the world (Altavilla, 2020).

In response, the United States enacted the American Rescue Plan Act of 2021 to mitigate many of the adverse circumstances prevailing throughout the nation. This economic and budget policy was unprecedented with both its size and scale of relief. From a budget perspective, the Act called for multiple stimulus payments to Americans along with the expansion of certain unemployment benefits on the state level. The act also included other budgetary expenditures related to personal protective equipment, ventilators, and hospital investments. Finally, from a budget perspective, the act also provided aid to small businesses who were facing financial difficulties as a result of the unparalleled disruption to their businesses (Anukoonwattaka, 2020)

May

The American Rescue Plan is heavily influenced by biblical principles and foundations. The first and most obvious is the responsibility to care for those who are less fortunate or are going through hardships. Here, taxpayers were forced to use their tax dollars to support businesses, unemployed individuals, schools and healthcare workers. These tax dollars were spent not only to help prop up the American economy but also to provide assistances to those who desperately needed the help. This is very akin to many of the principles of the bible. The most obvious correlation is the sacrifice Jesus made for the sins of all humanity. Here, he gave his life for the salvation of all mankind. Although the pandemic doesn’t compare to the sacrifice of Jesus, it does have similarities related to the concept of self-sacrifice of the benefit of others. Likewise, the concept of giving and charity is another concept inherent within the policy. Charity and giving are core tenets within the bible. These concepts are heavily applicable throughout the legislation with many individuals receiving benefits and charity as a result of circumstances beyond their control (Afonso, 2021).

As it relates to constitution authority, the act is within the rights of the legislative branch to enact rules and regulations to govern the country. Here the legislation does have certain provisions that are related to inalienable rights. For example many of the benefits and provisions are not provided based on race or religious preferences but are instead willingly given to those based on individuals being members of the United States of America. Likewise, the concept of federalism is heavily used throughout the legislation. Here, states where awarded funds in an effort to better administer benefits related to unemployment and personal protective equipment.

Can

From a feasibility perspective, the act was successful due in part to the concept of federalism discussed above. Likewise, the biblical principles the underpin the act are also widely accepted throughout society. As a result, the ability to enact, pass and implement the legislation is high. The country was in desperate need of assistance, the country had the financial capacity to enact the legislation, and the political will behind the legislation enabled its facilitation (Baldwin, 2019).

Political Feasibility

As noted above the policy has already become law and has already been administered throughout the nation. For one, the law passed in both the house and senate with large majorities indicating the bipartisan support of the initiative. Likewise, the economic environment at the time precluded a necessary intervention and stimulus effort. These stimulus efforts are still underway during 2022 as student loan payments have been forgiven, stimulus checks are still being mailed out, and interest rates remain at historic lows (Altshuler, 2016).

Financial feasibility

From a financial perspective, there is a very large amount of uncertainty related to the ramifications of the stimulus effort. For one, the national debt has ballooned to what many regards as an unsustainable level. Likewise, the trade deficit has also swelled to unsustainable levels as Americans import more products and services from international countries. This can cause large problems in the event that interest rates rise, causing debt service payments to increase. Likewise, inflation has been very robust due primarily to large stimulus efforts enacted from the policies discussed above. This all has the impact of creating an adverse financial environment into the future.

Practical feasibility

The resources required to implement the policy are numerous. For one, the infrastructure of the United States allows resources to be allocated to their highest and best use. This ultimately improves efficiency of resources and improves outcomes for society.

Should

To summarize, my position is that the American Rescue Act was a net positive for both society and the world. From a biblical standpoint, the act aligns with many of the core concepts and principles of the bible. Namely, the ability to look after and help other in need. Likewise the system of federalism allows the states to better allocate financial resources to entities that needed them. The plan is designed to help those, through no fault of their own, were disproportionately impacted by the pandemic. All in all the plan should be approved based on these merits.