ANALYSIS 03 MAY, 2021 The Macroeconomic Consequences of the American Families Plan and the Build Back Prepared by Better Agenda Mark Zandi
[email protected] Chief Economist INTRODUCTION Bernard Yaros Jr.
[email protected] President Biden has unveiled the American Families Plan, the second part of his Build Back Assistant Director Better agenda focused on investing in the nation’s labor force. We assess the macroeconomic consequences of the AFP in this white paper, and find that while its near-term impacts are small, Contact Us it provides meaningful longer-term economic benefits by increasing labor force participation and the educational attainment of the population. When combined with the American Jobs Email Plan, the first part of the Build Back Better agenda focused on expanding the nation’s public
[email protected] infrastructure, and which we assessed recently, the economy’s long-term growth prospects are U.S./Canada brighter. Moreover, the financial benefits of that added growth largely accrue to hard-pressed +1.866.275.3266 lower-income and less-wealthy Americans. EMEA +44.20.7772.5454 (London) +420.224.222.929 (Prague) Asia/Pacific +852.3551.3077 All Others +1.610.235.5299 Web www.economy.com www.moodysanalytics.com MOODY’S ANALYTICS THE MACROECONOMIC CONSEQUENCES OF THE AMERICAN FAMILIES PLAN AND THE BUILD BACK BETTER AGENDA 1 The Macroeconomic Consequences of the American Families Plan and the Build Back Better Agenda BY MARK ZANDI AND BERNARD YAROS resident Biden has unveiled the American Families Plan, the second part of his Build Back Better agenda focused on investing in the nation’s labor force.