ICYMI: ROOSEVELT INSTITUTE: HOW THE BUILD BACK BETTER ACT WOULD ALLEVIATE INFLATION AND DRIVE SUSTAINED PROSPERITY

The Build Back Better Act Would Set U.S. On A Trajectory Of Sustained Economic Prosperity, Creating Over 4 Million Jobs Per Year and Easing Inflation

The investments in the Build Back Better Act would ease inflationary pressures on the U.S. economy, create over 4 million jobs per year, and set the country on a course of sustained economic prosperity, according to a new analysis released today by the Roosevelt Institute. While the stimulus measures from earlier this year minimized the recession and put the U.S. on a path to recovery, more federal investment is needed in the economy’s infrastructure, including in inefficient markets like child care.

The analysis also notes that recent inflation trends are sector-specific and due to pandemic-related supply-chain disruptions, and that the Build Back Better Act’s investments in those bottlenecks would relieve inflationary pressures.

KEY POINTS: 

  • While the COVID-19 pandemic disrupted the economy in ways never before seen, the extraordinary stimulus measures of the American Rescue Plan successfully minimized the recession and facilitated a faster recovery. The American people have experienced some bumps along the recovery path, however, including unemployment for some groups and price increases for others. These experiences point to the need for more federal investment in the economy’s infrastructure, from roads and bridges to childcare—investment that would both alleviate inflationary pressures and create millions of jobs.

  • The Build Back Better Act would create over 4 million jobs per year, on average, over the course of a 10-year spending window, through direct public spending and increased indirect demand in related industries.

  • The Build Back Better Act commits the government to steady fiscal spending over the course of 10 years, focused on critical infrastructure that would pump money into the economy now, spur private sector investment and consumer spending, and expand the economy’s capacity over the long term. It would increase the supply of childcare, create new jobs, and allow parents to get back to work.

Read the full brief and a fact sheet here.

The investments in President Biden’s full Build Back Better agenda will create jobs, lower costs, and lower taxes for working families. 

  • The Build Back Better agenda will create millions of jobs: 

  • The Build Back Better agenda will lower taxes for middle class families: 

    • It will expand the Child Tax Credit, lowering taxes for middle class families by providing 39 million households and nearly 90% of children in the U.S. a major tax cut and cutting the child poverty rate in half.

  • The Build Back Better agenda will lower costs for working people:  

    • It will lower prescription drug costs for Americans by letting Medicare negotiate drug prices, so consumers are no longer at the whim of pharmaceutical companies.

    • It will lower child care costs — which cost parents $30-35 billion in income before the pandemic. Access to affordable child care could increase the lifetime earnings for women with children by nearly $100,000.

    • It will lower health care costs and premiums for those buying coverage through the ACA by extending the American Rescue Plan’s cost savings; adding dental, vision, and hearing coverage to Medicare; and closing the Medicaid gap for low-income Americans.

    • It will lower education costs by making two years of community college tuition-free and making universal preschool a reality.

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