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Epidemics

Biden's "Build Back Better" Agenda: Strategic Choices for a Transformative Economic Plan

Strategic Insights

— 2 min read

As President Biden prepares to detail his "Build Back Better" agenda next week, he faces a strategic dilemma in navigating the challenges of passing a potentially transformative economic plan through Congress. With a $4 trillion price tag over the next decade, the plan aims to rebuild infrastructure, revitalize America's competitiveness in emerging industries, and reduce barriers that hold back men of color and women in the workplace. To salvage the rest of his campaign plans, Mr. Biden may need to drop some initiatives and compromise on others.

Key Takeaways:

  • The "Build Back Better" agenda is a catchall phrase that encompasses plans to overhaul American capitalism, with a focus on rebuilding infrastructure, revitalizing competitiveness in emerging industries, and reducing barriers for men of color and women in the workplace.
  • The plan could cost as much as $4 trillion over the next decade, with $2 trillion allocated to physical investments and $2 trillion to human investments, including education and care initiatives.
  • Moderate Democrats are insisting that the process engage Republicans and that at least some of the spending be paid for with tax increases that could add up to trillions of dollars.
  • Conservatives have already lined up to reject Mr. Biden's plans to force corporations and the rich to pay more to fund the programs.
  • The president's team recommends splitting the efforts between two bills, totaling $3 trillion in new spending and up to $1 trillion more in tax breaks.
  • Liberal economists stress that if Mr. Biden wants to truly upgrade the economy, he needs both physical and human investments.
  • The plan includes initiatives like universal prekindergarten, free community college, and paid leave, which are critical pieces of building an economy where women can work and earn more.
  • Inside the administration, aides disagree on the likelihood that both halves of the plan could pass Congress this year.
  • Some see hope that Republicans could join an effort to pass a bill that spends heavily on roads, bridges, water systems, and other traditional infrastructure.
  • Democratic leaders will likely prepare to move at least one part of Mr. Biden's plans quickly through the budget reconciliation process, which allows senators to skirt the filibuster and pass legislation with a bare majority.

Statistics:

  • The "Build Back Better" agenda could cost as much as $4 trillion over the next decade.
  • $2 trillion is allocated to physical investments, including traditional infrastructure and high-growth industry cultivation.
  • $2 trillion is allocated to human investments, including education and care initiatives.
  • The plan includes initiatives like universal prekindergarten, free community college, and paid leave.
  • Democrats have used the budget reconciliation process to pass legislation with a bare majority, including the coronavirus relief bill.

Sources:

  • The New York Times, "Biden to Outline 'Build Back Better' Agenda in Pittsburgh" (no date provided)
  • The New York Times, "Biden's 'Build Back Better' Plan: A Catchall Phrase for a Transformative Economic Agenda" (no date provided)
  • The New York Times, "A Year of Protests Over Racial Justice, and an Early Administration Focus on Racial Equity" (no date provided)
  • The New York Times, "A Proposal to Secure the Most Expensive Federal Investment Ever in Roads, Bridges, Public Power, and the Building Blocks of a Low-Carbon Energy Economy" (no date provided)
  • The New York Times, "Senator Ron Wyden of Oregon, Chairman of the Finance Committee" (no date provided)
  • The New York Times, "Jon Lieber, Managing Director, United States, for the Eurasia Group in Washington" (no date provided)

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