ICYMI: NOBEL LAUREATE JOSEPH STIGLITZ: “NO CONCEIVABLE WAY” BUILD BACK BETTER INVESTMENTS WOULD INCREASE INFLATION

Stiglitz Joins Group of Economists Who Say That Inflation Fear-Mongering Is Not Backed By Economic Evidence

POLLING: 62% of Voters, Including a Majority of Independents, Support Passing the Investments in the Build Back Better Agenda Through Reconciliation

On a press call hosted by Invest in America Action and as reported by the New York Times, renowned economist and Nobel laureate Joseph Stiglitz refuted Republican claims that President Biden’s Build Back Better agenda will exacerbate inflation. During the call, Stiglitz stated that if the Build Back Better investments are passed as proposed, “there is no conceivable way that they would have any significant effect on inflation.”

Stiglitz joins a large group of noteworthy economists who have stated that the investments in the Build Back Better agenda would not have an inflationary effect on the economy, but rather, would ease inflation pressures as they create millions of jobs, reduce costs for families, and lower taxes on working and middle-class Americans.

KEY POINTS
  • “There’s been a lot of fear-mongering concerning inflation,” Joseph E. Stiglitz, a liberal economist at Columbia University, said on Tuesday during a conference call to support Mr. Biden’s economic plans. But the president’s spending proposals, he said, “are almost entirely paid for.”

    “If they are passed as proposed,” he added, “there is no conceivable way that they would have any significant effect on inflation.”

    The debate over the effects of the proposals “has nothing to do with the current angst over inflation,” said Mark Zandi, a Moody’s Analytics economist who has modeled Mr. Biden’s plans.

Read the full article here.

The investments in President Biden’s full Build Back Better agenda will create jobs, lower costs and reduce middle-class taxes:

  • 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.