The US entered the pandemic with a federal budget that was on an unsustainable trajectory, with spending outstripping revenues as far as the eye could see. It will exit the pandemic with the highest level of debt, even relative to gross domestic product, in the nation’s history, and an even more dire trajectory. Yet the Biden administration claims the economy requires another $1.9tn in federal spending.

This proposal raises two questions. First, has the pandemic-related spending so far been justified?
Second, does the economy need another massive fiscal injection and, if so, what is the right amount and how do we pay for it?