Confronting the Inflation Scare
November 24, 2021
There is a new scare tactic corporations and their lobbyists are using to maintain the status quo of hoarding their profits for themselves. They are manufacturing a false and misleading panic about inflation to scare elected officials away from supporting policies that require corporations and the ultra-wealthy to pay their fair share.
We cannot let a disingenuous panic over inflation get in the way of passing our common-good agenda.
Here are the facts about our economy:
1.) COVID-19 is the driver of recent inflation, not public investments. Resolving supply-chain problems and making progress on COVID-19 will reduce inflation.
-Consumers shifted their buying patterns during the pandemic, spending more on goods than on services. This is temporarily squeezing capacity and driving up prices.
-On the supply side, supply-chain bottlenecks are the result of initial shutdown of production and ongoing disruptions from the pandemic around the globe.
2.) The Build Back Better plan will help reduce inflationary pressures in the long term.
-Build Back Better (and the Infrastructure Investment and Jobs Act) will create jobs and make it easier for workers to keep them, expand our capacity to produce goods and services in the medium- to long-term, and reduce the risk of inflation.
3.) In the short-term, the Build Back Better plan will help families deal with rising costs by:
-Providing families with children up to $300 per month per child to help afford the basics and get ahead
– Helping families cover the rising cost of childcare – one of families’ biggest costs
– Lowering the cost of prescription drugs and making health insurance more affordable
– Helping people with low incomes afford housing and avoid evictions and homelessness
It is deceptive to look only at rising prices, without taking into account recent wage gains and income boosts from the American Rescue Plan. Seventeen Nobel Prize-winning economists refuted inflation panic and supported President Biden’s economic agenda in a joint letter, saying,
“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.”
Build Back Better will help our communities recover from the COVID-19 pandemic equitably. The Build Back Better Act just passed the House; now we must urge the Senate to pass the bill and send it to President Biden’s desk.
Thank you for your help confronting inflation-panic scare tactics and advocating for Build Back Better!