WH memo sees economic strength where critics see fragility

WASHINGTON (AP) — White House officials are seeking to quell anxiety about inflation and the pace of hiring — issuing a memo Tuesday that highlights robust economic gains as the United States gets vaccinated and recovers from the coronavirus pandemic.

The memo, obtained by The Associated Press, said the administration is “focused on an economic strategy of containing the virus and growing the economy from the bottom-up and middle-out. Data suggest that this strategy is working.” It is from Brian Deese, director of the White House National Economic Council, and Cecilia Rouse, chair of the Council of Economic Advisers.

The memo makes the case to senior administration officials and members of Congress that the government's $1.9 trillion relief package has helped boost growth and that workers will return to jobs with “fair wages and safe work environments.” It also argues that President Joe Biden's $4 trillion infrastructure and families plan will lay “the groundwork for strong, durable growth for decades to come."

The administration had until recently been basking in optimism about the economy, only to face a worrisome set of reports that showed a jump in consumer prices and a disappointing level of hiring in April. The memo is an attempt to promote a sunnier narrative and stress the need for additional spending to be paid for with higher taxes on corporations and the wealthy.

Critics seized on the recent economic reports to suggest that the $1.9 trillion relief package was so big it would fuel inflation and to contend that its enhanced unemployment benefits were encouraging Americans to forgo working.

“Democrats insisted on continuing to pay people more not to work,” Senate Republican Leader Mitch McConnell said in a Monday speech. “Instead of an agenda to reopen...