PRESS RELEASE: NEW: MOODY’S REPORT SAYS BIF, RECONCILIATION WILL “LIFT PRODUCTIVITY” AND “EASE INFLATION PRESSURES”
FOR IMMEDIATE RELEASE
July 21, 2021
Maddy McDaniel, Communications Director
[email protected] or 914-471-7716
NEW: MOODY’S REPORT SAYS BIF, RECONCILIATION WILL “LIFT PRODUCTIVITY” AND “EASE INFLATION PRESSURES”
“Greater investments in public infrastructure and social programs will lift productivity and labor force growth.”
“Worries that the plan will ignite undesirably high inflation and an overheating economy are overdone.”
“…failing to pass legislation would certainly diminish the economy’s prospects.”
WASHINGTON, D.C. — Passing both the bipartisan infrastructure framework and the $3.5 trillion reconciliation package outlined and agreed to last week by Democrats on the Senate Budget Committee will “lift the economy’s longer-term growth potential and ease inflation pressures,” according to a new report from Moody’s chief economist Mark Zandi.
The report makes the case that Biden’s public investment plan will be a major boon to the long-term health of the economy, delivering stronger growth, lowering unemployment, and shrinking the disparities that exist in the economy. Zandi also concludes that fears about the legislation causing high inflation are “overdone.”
Read the full text of the report here.
“Greater investments in public infrastructure and social programs will lift productivity and labor force growth, and the attention on climate change will help forestall its increasingly corrosive economic effects.”
“Moreover, the policies being considered would direct the benefits of the stronger growth to lower-income Americans and address the long-running skewing of the income and wealth distribution. Passage of legislation is far from certain but failing to pass legislation would certainly diminish the economy’s prospects.”
“The legislation is more-or-less paid for on a dynamic basis through higher taxes on multinational corporations and the well-to-do and a range of other pay-fors. Worries that the plan will ignite undesirably high inflation and an overheating economy are overdone.
RELATED FACTS & FIGURES:
S&P Global estimates that a $2 trillion investment in public infrastructure over 10 years would create 2.3 million jobs, grow personal income by $2,400, boost household spending by $3.5 trillion, and inject $5.7 trillion to the U.S economy — that’s 10 times what was lost during the Great Recession.
The time is right for a big investment — a $2 trillion infrastructure investment now could mean that each dollar spent will have a return of $2.70, according to S&P.
By itself, the American Jobs Plan’s power sector investments could double the share of clean electricity generation after 10 years.
A lack of affordable child care has become a barrier to work for many parents, especially mothers. Equal access to high-quality child care and preschool would increase GDP by $551 billion by allowing more parents to seek and keep their jobs.
A study from the Washington Center of Equitable Growth found that a universal preschool program would generate economic benefits surpassing the costs of the program within eight years. By 2050, the economic benefits would total $304.7 billion.
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.