Granite State Times

In the wake of the COVID-19 pandemic, congressional leaders and the Biden administration have looked for ways to pull the economy out of its malaise, but the spending and inflation have sent up red flags among New Hampshire voters.

While New Hampshire’s congressional delegation voted for spending bills, like the American Rescue Plan, as a lifeline to kick-start the post-pandemic economy, the spending, coupled with supply chain issues, has sparked inflation. When the inflationary trend could reverse remains to be seen, as Treasury Secretary Janet Yellen told CNBC she expects inflation to continue for a few more months. 

“We will have several more months of rapid inflation,” Yellen told CNBC. “So I’m not saying that this is a one-month phenomenon. But I think over the medium term, we’ll see inflation decline back toward normal levels. But, of course, we have to keep a careful eye on it.”

Janet Yellen | Wikimedia Commons

The American Rescue Plan, unanimously supported by New Hampshire’s Democratic congressional delegation, was on the mind of lawmakers who queried Federal Reserve Chairman Jerome Powell. According to CNBC, said he expects inflation to subside as the impact of the pandemic is reduced and the economy returns to normal. The network also reported that Yellen contends the American Rescue Plan will boost the economic recovery. 

“I think we’re seeing it having the desired effect, as well as preventing scarring and harm to families and their finances,” she told CNBC. 

However, that may not ease the concerns that New Hampshire voters have. According to the Congressional Budget Office, a federal budget deficit of $2.3 trillion is expected in 2021, nearly $900 billion less than the 2020 deficit. The CBO noted that the pandemic has expanded those deficits. From an economic stimulus package to a record infrastructure bill, spending remains an issue, and it's drawing the ire of Republicans on Capitol Hill. 

“The problem of runaway spending is no longer generations away,” U.S. Sen. Mike Lee (R-Utah) said on Twitter. “It’s now reached its hand into our wallets, our families and our day-to-day lives.”

Those concerns are being echoed by New Hampshire voters. A Saint Anselm College Survey Center poll found that government spending is the top concern among the state’s voters (22%), the largest amount citing it as their top issue. 

In the Saint Anselm poll, New Hampshire voters also expressed a high level of concern about inflation, with 83% of the poll’s respondents expressing worry. Moreover, 77% expressed concern about the national debt and few (28%) expressed confidence in the Democrats’ handling of the economy. 

According to a report from the Congressional Budget Office, federal revenues are expected to increase in relation to gross domestic product (GDP). The report noted that this is due to the expiration of some temporary provisions related to the pandemic, previously instituted tax increases, as well as other economic factors.