The right way for America’s states to use federal largesse
America’s states have more green stuff than grey matter
NEARLY A YEAR has passed since Congress approved the American Rescue Plan Act (ARPA), promising spending of $1.9trn, equivalent to 9% of GDP. Many, including this newspaper, worried that such federal largesse looked excessive. Those fears have been borne out. ARPA helped create a surge of demand that contributed to the inflation that is plaguing America and which is higher than in other advanced economies. It also gave states and local-government agencies over $650bn—more than they knew what to do with.
This article appeared in the Leaders section of the print edition under the headline “Wasting a windfall”
From the February 26th 2022 edition
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