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“But the pandemic will pass, as will the emergency government actions. This will weaken the upward pressure on prices.” For economic purposes, the pandemic has already passed. “Stimulus” passed now will not have an effect for two or three months — and then it will fuel inflation.
The “American Jobs Plan” that was touted by Biden and turned down by the Senate is a prime example. Much of the actual infrastructure it supposedly promoted was economically useless dream projects that would never pay for themselves by increased commerce producing increased taxes, The rest was Democratic wet dream stuff, which would also promote inflation.
HR 1 has just gone down in flames, so interference in the states’ election processes is dead for the session. Ten senators are apparently nearing agreement on a infrastructure bill that actually deals with infrastructure and is half the size of Biden’s fantasy — but they aren’t there yet and there are forty more Senators to persuade.
The Democrats bloviate about passing all their pet projects via reconciliation — but they almost certainly can’t get 50 votes plus Harris in the Senate. The wheels are coming off the juggernaut, and we should all be grateful.