Nearly four years ago, the Biden administration and Congressional Democrats made a $1.9 trillion bet in the form of the American Rescue Plan. They lost, as it contributed to a surge in inflation that fueled massive voter discontent and Donald Trump's return to the White House.
Why it matters: In the next recession, politicians and policymakers may be more hesitant to unleash the type of programs that drove America's rapid recovery from the pandemic-induced crisis.
A fierce divide has emerged from the early autopsies of Democrats' election disaster: Was it policy — or culture — that doomed the party with working-class Americans?
President-elect Trump won the U.S. presidential election insignificant part due to voter dissatisfaction with the economy, including the legacy of high inflation. The question ahead is whether his policies will create a happier economic balance for Americans.
Why it matters: If Trump's campaign promises become reality, it would mean less immigration, high tariffs and tense trade relationships, lower taxes, and bigger fiscal deficits.
