PRESS RELEASE: ECONOMISTS: TRANSITORY INFLATION SHOULD NOT HINDER INVESTMENTS IN CLEAN ENERGY, CAREGIVING
FOR IMMEDIATE RELEASE
July 15, 2021
Maddy McDaniel, Communications Director
[email protected] or 914-471-7716
ECONOMISTS: TRANSITORY INFLATION SHOULD NOT HINDER INVESTMENTS IN CLEAN ENERGY, CAREGIVING
Economic Policy Institute’s Josh Bivens: “Should proposed investment plans from the Biden administration be put back on the shelf because of the recent uptick in inflation? No.”
Roosevelt Institute’s Mike Konczal: “We know what investments we need to make — we needed to make these investments in care and climate even if there had been no pandemic. Now is the time to make them.”
Groundwork Collaborative’s Rakeen Mabud: “What we lose in succumbing to fear-mongering about inflation is the wellbeing of millions around the country.”
WASHINGTON, DC — During yesterday’s House Financial Services Committee hearing, Federal Reserve Chair Jerome Powell testified that he still believes the uptick in inflation is the transitory result of an economy opening back up from the pandemic. Despite those assurances, some in Congress are trying to use Tuesday’s Consumer Price Index as an excuse not to make much-needed investments in infrastructure, caregiving, clean energy, and more.
The Roosevelt Institute’s Mike Konczal, Economic Policy Institute’s Josh Bivens, and Groundwork Collaborative’s Rakeen Mabud made the following statements at a press call hosted by Invest in America on Wednesday:
“Should proposed investment plans from the Biden administration be put back on the shelf because of the recent uptick in inflation? No,” said Josh Bivens, Director of Research at Economic Policy Institute. “Some of the hand wringing about the recent inflation numbers is in genuine good faith; lots of the hand wringing is political opportunism meant to derail some of President Biden’s proposed investment plans. These proposed plans really aren’t about macro stimulus, they are investments meant to boost the long-run productive potential of the economy. Grading whether we should go forward with these plans is less about what the inflation rate is in June and more about whether it’s worth investing in the mitigation of climate change and providing affordable and humane care for our children and older citizens.”
“The bottlenecks we are seeing are the result of rapid reopening, the big and fast deployment of vaccines, and sufficient economic stimulus,” said Mike Konczal, Director of Macroeconomic Thought at the Roosevelt Institute. “Inflation is an issue to watch, but we know what the problem is and we know where it is. We know what investments we need to make — we needed to make these investments in care and climate even if there had been no pandemic. Now is the time to make them.”
“Our economy has been broken for millions of workers, families, and communities for decades. When so many are facing consistent economic precarity, our whole economy sits on a faulty foundation,” said Rakeen Mabud, Managing Director of Policy and Research and Chief Economist at Groundwork Collaborative. “What we lose in succumbing to fear-mongering about inflation is the wellbeing of millions around the country. All of the evidence points to the need to maintain current Fed policy and make the investments necessary to ensure that the people who truly make our economy run are able to fully recover.”
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.
About Small Business for America’s Future
Small Business for America’s Future is a national coalition of small business owners and leaders working to provide small businesses a voice at every level of government. We’re committed to ensuring policymakers prioritize the nation’s 30 million small businesses to create an economy that works for them, their workers and their communities. Visit www.smallbusinessforamericasfuture.org. Follow us on Twitter and Facebook. #SmallBizAF.