ECONOMISTS: WHY THE BUILD BACK BETTER ACT WILL EASE INFLATION
The Build Back Better Act will ease inflation, according to the latest report from Moody’s Analytics’ Mark Zandi. Zandi joins an ever-growing group of experts and economists who say the Build Back Better Act is the solution to inflation because it expands the economy’s productive capacity and has real cost-saving impacts.
Here’s Why Economists Say the Build Back Better Act Will Ease Inflation:
It Will Increase Productivity:
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.’”
Jason Furman, Professor at Harvard’s Kennedy School of Government: “If you’re expanding the productive capacity of the economy, you are putting some downward pressure on inflation […] If I were looking at this legislation […] I wouldn’t adjust my inflation forecast at all.”
72 Economists: “The Bipartisan Infrastructure Deal and the Build Back Better agenda could ease some inflationary pressures by introducing significant supply-side measures into the economy and expanding labor force participation and production possibilities.”
It’s Not About Stimulus — It’s About Long-Term Investment:
Paul Krugman, Nobel Laureate Economist: “If you’re worried that the Democratic plan would overstimulate the economy, bear in mind that it would provide less stimulus than the headline spending numbers might suggest. But if the plan isn’t about stimulus, what is it about? Mainly investment — and that reduces the inflationary risks even further. 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.”
J.W. Mason & Lauren Melodia, Roosevelt Institute: “If inflation fears lead the Fed to raise rates aggressively or Congress to scale back or abandon the Build Back Better agenda, those policy decisions will turn today’s temporary disruptions into a permanently weaker economy with higher unemployment and greater racial and income inequality. On the other hand, if policymakers recognize today’s inflation for what it is—the short-term friction of a rapid recovery—then today’s inflation may become a footnote to the story of a historic economic boom.”
It’s Designed to Ease The Burden on Middle Class Families Hurting from Inflation:
Mark Zandi, Chief Economist of Moody’s Analytics: “Longer term, much of the additional fiscal support being considered is designed to lift the economy’s longer-term growth potential and ease inflationary pressures […] The legislation is also 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.”
About Invest in America
Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.
The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.