During a speech on Thursday, Treasury Secretary Janet Yellen praised the economy under Democrat President Joe Biden, saying the United States experienced “one of the quickest economic recoveries in our modern history.”
Yellen’s comments came shortly after she admitted that she had been “wrong” about inflation when she said repeatedly throughout 2021 that inflation was “transitory” and just a “small risk,” explaining to CNN’s Wolf Blitzer that she was incorrect because of shocks in the economy that she didn’t “fully understand.”
“Our plan has worked. Due to the American Rescue Plan and our vaccination campaign, the United States experienced the fastest pace of job creation in our history,” Yellen said. “Household balance sheets are strong. Businesses continue to invest. Our broad and inclusive recovery has outpaced that of many other large economies. And measured by gross domestic income, our economy continues to expand and is operating above levels that would have been predicted pre-pandemic.”
Notably, the United States officially entered a recession after the economy shrunk 1.6% in the first quarter and 0.6% in the second quarter.
Still, Yellen insisted, “It’s fair to say: by any traditional metric, we have experienced one of the quickest economic recoveries in our modern history.”
However, most metrics indicate that Biden’s American Rescue Plan actually harmed the economic recovery of the United States.
As previously reported, “Biden’s American Rescue Plan was a $1.9 trillion stimulus package that included an extension of $300 weekly enhanced federal unemployment insurance and $1,400 COVID relief payments, and it greatly contributed to the ongoing inflation crisis. When the bill was passed in March 2021, inflation was at 2.6%. The next month, inflation soared to 4.2%. From March 2021 to April 2021, core inflation, which excludes volatile food and energy prices, rose 0.9% – which was the largest monthly increase since April 1982.”
April 2021, the month after Biden’s American Rescue Plan was passed, also marked the first month that the unemployment rate increased since April 2020. The plan, which raised unemployment benefits and increased the time greater benefits would be offered, resulted in the economy adding back nearly 750,000 jobs less than expected in April 2021. Forbes reported at the time, “The United States added 266,000 jobs in April, according to data released by the Labor Department Friday—much worse than the 1 million job gains economists expected and far fewer than the 916,000 jobs added in March, indicating that the long-tepid labor market recovery is slowing down again even as stocks and corporate earnings rip higher.”
“Some economists say employers, particularly in the restaurant and entertainment industry, have been struggling to find workers because Biden’s relief package which included extended pandemic benefits for the unemployed, is deterring some workers from returning to their old job or seeking out a new position,” NBC News wrote in May 2021, adding, “Bank of America estimates that for those who were earning less than $32,000 a year before the pandemic, unemployment pays more than their former job. And, the bank estimates, that could keep 1 million people out of the workforce.”