logo
Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
Brief Publisher Logo
FACT BRIEF

Is the Build Back Better Act expected to increase inflation?

By Jacob Alabab-Moser
Copy link
email
Copy featured image
email
NO

Most economists in government and academia agree that the Biden administration's Build Back Better legislation will not contribute to inflation.

A memo by Treasury Secretary Janet Yellen reassured lawmakers that the legislation would not add to short- or long-term inflation given that it is projected to have a small short-term net deficit impact and, as highlighted by the Congressional Budget Office, reduce the deficit in later years.

Two groups of top economists released statements of support for the legislation as well as Biden's larger infrastructure and social spending agenda. The groups highlighted how the legislation will counter both short-term price increases during the pandemic and long-term inflationary pressures by investing in economic capacity and productivity over several years.

The Committee for a Responsible Federal Budget called the expected impact "ambiguous," recommending fully paying for the costs to reduce inflationary risk.

This fact brief is responsive to conversations such as this one.
Sources
Politico Secretary of the Treasury memo on fiscal responsibility and the Build Back Better Act
Center on Budget and Policy Priorities Build Back Better would save about $2 trillion in second decade
Economic Policy Institute Open letter from Nobel Laureates in support of economic recovery agenda
Invest in America Action Economists: Build Back Better Act’s cost cutting measures will alleviate strain of inflation on families
Committee for a Responsible Federal Budget What Will Build Back Better Mean for Inflation?
ABOUT THE CONTRIBUTOR
Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
FACT BRIEF BY
Brief Publisher Logo
Latest fact briefs
facebook
twitter
email
email
About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.