ICYMI: Moody's Analysis Says President Biden's American Families Plan Will Increase Labor Force Participation and Grow the Economy

In a report released this week, Moody's Analytics found that President Biden's American Families Plan, part of his Build Back Better agenda, "provides meaningful longer-term economic benefits by increasing labor force participation and the educational attainment of the population."

The report notes that most jobs created by the President's proposals "go to those with lesser skills and education and lower incomes. More important in the long run, the plan lifts incomes and wealth of lower-income Americans by helping them increase their educational attainment, go to work, own homes, and live closer to their jobs."

And, the report notes that the American Families Plan and the American Jobs Plan would boost labor force participation by nearly a full percentage point at the end of the decade.

Moody's attributes a large part of the labor force's projected growth to the plan's provisions to bolster childcare support and paid family leave. It also notes that further economic benefits will come from higher rates of college enrollment and universal pre-K beyond this decade.

Moody's concludes: "The Build Back Better plan is a bold effort to invest in the nation's infrastructure and labor force," and once passed through Congress, "would positively touch nearly every community in America."

Read the full report here.