PRESS RELEASE: NEW: BUILD BACK BETTER ACT WILL SAVE THE AVERAGE FAMILY $7,400, PER NEW THIRD WAY ANALYSIS

FOR IMMEDIATE RELEASE 
December 1, 2021

Contact:
Maddy McDaniel, Communications Director

[email protected] or 914-471-7716

NEW: BUILD BACK BETTER ACT WILL SAVE THE AVERAGE FAMILY $7,400, PER NEW THIRD WAY ANALYSIS

Build Back Better Act Will Save $7,400 for Average Family of Four & Save $15,000 for Average Single Parent, Says Third Way Analysis

Moody’s Analytics’ Mark Zandi: Build Back Better Act will “ease the financial burden of inflation for lower-and middle-income Americans”

WASHINGTON, D.C. — The Build Back Better Act’s cost-lowering investments will save the average family of four $7,400, according to a new economic analysis from Third Way. That number increases to $15,000 for a single parent with two children. These savings are the result of investments that lower the cost of health care and child care and tax credits that will give middle class families the breathing room they need.

The analysis did not include other investments like universal Pre-K or affordable housing, which would offer even more savings to American families. Read the analysis here.

Third Way is the latest of many economists and economic institutions finding Build Back Better Act would lower costs for families and ease inflation for the middle class:

  • Moody’s Analytics’ Mark Zandi: “The legislation is […] specifically designed to ease the financial burden of inflation for lower- and middle-income Americans by helping with the cost of childcare, eldercare, education, healthcare and housing for these income groups.”

  • Joseph Stiglitz, Nobel Laureate Economist: “Because this agenda invests in long-term economic capacity and will enhance the ability of more Americans to participate productively in the economy, it will ease longer-term inflationary pressures. This simply means what it says: it will have positive ‘supply side effects’ which reduce inflationary pressures.”

  • 17 Nobel Prize Winners Letter: “Because this agenda invests in long-term economic capacity and will enhance the ability of more Americans to participate productively in the economy, it will ease longer-term inflationary pressures.’”

  • Janet Yellen, U.S. Treasury Secretary: “[The Build Back Better Act] is easing expenses for families, taking some of their most important and worrisome expenses, like child care, like health care, and providing resources — often in the form of tax credits — so that families can bear those burdens. And in that sense too, it’s relieving the stresses from inflation that we’re seeing as our economy is opening back up.”

  • Paul Krugman, Nobel Laureate Economist: “Spending on physical infrastructure, both in the bipartisan bill the Senate has already passed and in the likely future Democrats-only bill, would alleviate the supply bottlenecks that have played a big role in recent inflation, while making workers more productive.”

    The Build Back Better agenda will lower costs for American families and the middle class

    • 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 the cost of long term care, expanding access to affordable home care to hundreds of thousands of Americans.

    • It will lower energy costs, saving the average American family hundreds of dollars per year by investing in clean energy.

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

    • 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 taxes for low-and-moderate-income workers by extending the American Rescue Plan’s Earned Income Tax Credit to millions.

    • It will lower education costs by expanding Pell grants and making universal preschool a reality.

    • It will lower housing costs by creating more than one million new affordable homes in rural and urban areas.

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