PRESS RELEASE: LEADING ECONOMISTS: THE BUILD BACK BETTER ACT WILL EASE INFLATION
FOR IMMEDIATE RELEASE
November 2, 2021
Maddy McDaniel, Communications Director
[email protected] or 914-471-7716
LEADING ECONOMISTS: THE BUILD BACK BETTER ACT WILL EASE INFLATION
Leading Economists Agree That The Build Back Better Act Will Ease Inflation by Making the Economy More Productive
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.”
For months, leading economists have agreed that the Build Back Better Act will ease inflationary pressures by making long-term investments in the economy’s growth and productivity. These initiatives will help parents get back to work, improve education and productivity, and – when combined with the Bipartisan Infrastructure Deal – help address supply chain backlogs by fixing key infrastructure like roads, bridges, and ports.
Last week, more than 60 economists signed a statement urging Congress to pass the Build Back Better Act to boost the economy, create jobs, and lower costs for middle-class Americans.
WHAT LEADING ECONOMISTS HAVE SAID ABOUT THE BBB ACT’S INFLATION-EASING MEASURES:
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.’”
Paul Krugman, Nobel Laureate Economist: “On the contrary, Democrats are proposing to pay for most of the new spending with new taxes on the wealthy (plus collecting the taxes the wealthy owe but haven’t been paying). In other words, 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.”
Mark Zandi, Chief Economist of Moody’s Analytics: “Moreover, much of the additional fiscal support being considered is designed to lift the economy’s longer-term growth potential and ease inflation 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.”
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.