‘Build Back Better’ agenda will ensure strong, stable recovery in coming years

‘Build Back Better’ agenda will ensure strong, stable recovery in coming years: This report assesses the potential macroeconomic impact of two pieces of legislation pending in Congress: the Infrastructure Investment and Jobs Act (IIJA), incorporating elements of the American Jobs Plan (White House 2021a, 2021c, 2021d), and Congress’s $3.5 trillion (over 10 years) budget reconciliation bill. In combination, the IIJA and budget reconciliation package would provide fiscal support for more than 4 million jobs per year, on average, over the course of the 10-year budgeting window, through direct spending and increased indirect demand in related industries. The IIJA will provide fiscal support for 772,400 jobs per year, or 19% of the total jobs supported by the combined package. The budget reconciliation is expected to support more than 3.2 million jobs per year, or 81% of the total jobs. The budget reconciliation’s outsize economic impact flows not just from its more significant investments, but in focusing investment on activities that require relatively more employment. Manufacturing industries would see a significant boost under these combined plans, with more than 556,000 jobs supported annually. The planned investments would support more than 312,000 jobs annually in construction industries. The budget reconciliation would vastly expand caregiving jobs to address unmet needs in child care and elder care, supporting 1.1 million jobs per year. Climate-related and other environmental provisions in the legislation would support%...