Two Views of American Families Plan
The White House and Republican National Committee are each touting different economic analyses that reach far different conclusions about the budget and economic impact of President Joe Biden’s American Families Plan.
One analysis from Penn Wharton Budget Model – which is being promoted by the RNC – directly contradicts Biden’s claims that the plan “doesn’t add a single penny to our deficit” and that it is “estimated to grow the economy another trillion dollars.”
In its May 5 analysis, PWBM estimates that over 10 years, the plan would spend $1.2 trillion more than it takes in in new revenue, and would increase government debt by almost 5% by 2050. It also predicts the plan would decrease GDP by 0.34% over 10 years, and by nearly 0.4% by 2050.
Another analysis of the American Families Plan from – which the White House has been sending around — provides some cover for the president’s claims, but only in the event that the plan is passed in conjunction with the American Jobs Plan. (The president is calling the two plans together his “Build Back Better” agenda.)
