The Cost of Living in America: Helping Families Move Ahead with the Build Back Better Agenda
New Report from the Council of Economic Advisers and Office of Management and Budget
Over the last three decades, American families have experienced a rise in the costs of many necessities that has made it difficult for them to attain economic security. While prices of some services and goods have fallen substantially over this period, especially when bearing in mind increases in their quality, several others—particularly health care, prescription drugs, childcare, and education—have risen substantially, and in many cases, faster than incomes. Rising income inequality and the fact that low- and middle-income-families spend a higher share of their budgets on necessities mean that low- and middle-income families are more exposed to these cost increases.
Through the Build Back Better economic agenda, the Biden Administration has proposed critical investments to address these long-standing cost pressures. Families with young children will benefit most from the proposed expansion of the Child Tax Credit, universal preschool, and improvements in the quality of childcare and a reduction in associated out-of-pocket costs. Proposals to lower prescription drug cost through Medicare-negotiated prices, add dental and vision benefits to Medicare, and expand access to home- and community-based care through Medicaid will especially benefit households with elderly members. Combined, these policy proposals, and others put forward by the President, will help ensure that families can meet costs and share in a broad prosperity.
Read the full report here.