Letter to Phillip Swagel, Director of Congressional Budget Office - McHenry, Emmer Urge CBO to Study Disastrous Impact of Democrats' Reckless Spending Proposals

Letter

Last September, the Congressional Budget Office issued a report entitled "The Effects of
Pandemic-Related Legislation on Output." The reported analyzed the economic impact of the
four spending bills Congress passed between March and April 2020, including the effect on
gross domestic product (GDP), inflation, the debt and deficits. Since then, Congress has spent an
additional $900 billion in December 2020 and $2 trillion in March 2021 in response to the global
pandemic. Moreover, Democrats are on the cusp of spending an additional five trillion, some of
which will be paid for through higher taxes, but mostly financed through additional debt.
This massive spending spree will have short and long-term implications for the economy,
including on GDP and inflation. Current CBO fourth quarter projections suggest GDP will grow
to 7.4 percent, inflation will hold at 2.8 percent, and unemployment will drop to 4.6 percent.
Recent data suggests the economy is slowing as prices continue to rise. Moreover, there
continues to be a significant disconnect between employers and workers. We are concerned that
massive new spending will only exacerbate this negative trend.
To that end, we request that CBO update its September 2020 report to include the effects of the
December and March spending. In addition, CBO should also include a projection of the impact
the $1.2 trillion Infrastructure Investment and Jobs Act and the $3.5 trillion in new spending
associated with reconciliation will have on the economy. The report should include the impact on
consumer prices, employment, wages and overall economic conditions.
We appreciate your attention to this timely request. If you have any questions, please do not
hesitate to contact Stephen Sandora at Stephen.Sandora@mail.house.gov.

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