New York Democratic congressman Jamaal Bowman is citing the federal government’s COVID-era spending—which drove up inflation—as proof that Congress can pass a $14 trillion reparations package without raising taxes, saying the money can simply be “spent into existence.”
Bowman touted the package, which he cosponsored last year alongside fellow left-wing lawmakers Ilhan Omar (D., Minn.) and Cori Bush (D., Mo.), in an interview with the Journal News. Addressing concerns over how to pay for the package, Bowman cited the government’s response to COVID, saying Congress can “invest the same way in reparations without raising taxes on anyone.”
“When COVID was destroying us, we invested in the American people in a way that kept the economy afloat,” Bowman said. “Where did that money come from? We spent it into existence.”
Bowman’s comments come as Americans continue to grapple with high inflation, which edged up in December thanks to rising food and housing prices. President Joe Biden’s nearly $2 trillion American Rescue Plan, which Bowman voted for, contributed to those price hikes. Still, Bowman said he had no reservations about spending seven times as much money—and adding to the $34 trillion national debt—to pay roughly $333,000 to every black American, given that the money could be paid out “over 5 or 10 or 20 years.”
“You could take that $333,000 and break it up into monthly checks over X amount of time,” Bowman said in his Journal News interview. “There are creative ways to do the right thing and do what needs to be done.”
Bowman’s fellow New York lawmakers disagree. Reps. Mondaire Jones (D.) and Mike Lawler (R.) oppose the bill, as does Westchester County executive George Latimer (D.), who is challenging Bowman. Latimer dismissed Bowman’s proposal as a “one-house bill with no chance of passing,” a reference to the fact that the legislation does not have a sponsor in the Senate and would therefore not advance to the upper chamber even if it passed the House.
“It is clearly a political statement more than anything else,” Latimer said.
Public finance economist and Heritage Foundation research fellow E.J. Antoni criticized Bowman’s bill for a different reason—its exorbitant price tag. The estimated $14 trillion, Antoni noted, is more than half of America’s 2022 GDP.
“The federal government doesn’t have enough money to pay its current bills, let alone more spending that would exceed well over half the nation’s entire economy,” he told the Washington Free Beacon.
Bowman—who did not return a request for comment—nonetheless argued that his reparations package is morally necessary because “the economy wouldn’t exist in the way it does today if slavery hadn’t built it,” prompting the need to invest in the black community. Job Creators Network president and CEO Alfredo Ortiz dismissed that argument.
“Big government policies like Bowman’s reparations package hurt the very minorities they intend to help,” he told the Free Beacon. “The COVID spending blowout is a prime example, as it led to historic inflation that has disproportionately hurt minorities who tend to have lower and more fixed incomes.”
“The best way to close racial economic divides,” he continued, “is through increased entrepreneurship … not a reparations package that will further destroy the dollar and depress labor force participation.”
What are the potential economic consequences of implementing a $14 trillion reparations package, and how could it impact inflation and national debt?
Agreed with his stance. Rep. Alexandria Ocasio-Cortez, a prominent progressive in the Democratic Party, expressed support for the idea of reparations and emphasized the need to address racial wealth disparities in the country. She argued that the government’s ability to spend trillions of dollars during the pandemic proves that resources can be allocated for reparations without burdening taxpayers.
However, not everyone is convinced by Bowman’s argument. Critics argue that spending trillions of dollars without considering the consequences would further exacerbate inflation and add to the already significant national debt. They warn that such a massive expenditure without a clear plan for funding could have long-term negative effects on the economy.
Furthermore, opponents of reparations argue that it is unfair to single out a particular racial group for financial compensation. They argue that instead of providing reparations based on race, the focus should be on addressing systemic issues and providing opportunities for economic advancement for all Americans, regardless of their background.
The issue of reparations has long been a topic of debate in the United States. It stems from the history of slavery and racial discrimination that has deeply impacted black Americans. Proponents argue that reparations would acknowledge and attempt to rectify these past injustices. However, the logistics and feasibility of implementing such a program remain complex and divisive.
As the discussion around reparations continues, it is important for policymakers to carefully consider the economic implications and ensure that any proposed solutions address the underlying causes of racial wealth disparities while also promoting economic stability for all Americans.
In conclusion, Congressman Jamaal Bowman’s assertion that a $14 trillion reparations package can be “spent into existence” similar to the government’s COVID-era spending raises important questions about the role of government spending, taxation, and economic consequences. While the idea of reparations has its proponents and opponents, it is crucial to have a thorough and thoughtful discussion to find equitable solutions that address historical injustices while also considering the broader economic impact on the nation.
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