The U.S. economy saw a massive drop last year due to the COVID-19 pandemic. With a package of stimulus plans unveiled recently, some economists and Republicans were worried about the possibility of economic inflation and tax hikes.
The U.S. economy grew at an annual rate of 6.4 percent in the first quarter of 2021, due to a 2-trillion-U.S. dollar stimulus plan, according to the U.S. Commerce Department.
However, some economists have expressed concern over economic inflation due to government overspending, as well as the possibility of tax hikes.
Brookings Institution Senior Fellow Barry Bosworth told Xinhua that President Joe Biden’s stimulus may risk a significant acceleration of inflation.
Desmond Lachman, resident fellow at the American Enterprise Institute, told Xinhua that Biden’s stimulus “is bound to lead to an overheated U.S. economy and an unwelcome acceleration in inflation by year end.”