Build Back Better: A Recipe for Higher Child-Care Prices

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How the Build Back Better Act would raise prices for child care.

NRPLUS MEMBER ARTICLE P resident Biden is facing an unusual problem: His economic advisers may have been right about some things. Among them is that lower child-care costs can lower inflation by allowing more parents to work rather than stay home. A decline in the overall cost of labor could reduce consumer prices. President Biden himself, his Council of Economic Advisers, his director of the National Economic Council, and his secretary of transportation have all voiced some version of this notion. President Biden’s problem? The Build Back Better Act passed by the U.S. House of Representatives would significantly raise rather than lower child-care costs.

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Joseph W. Sullivan served at the White House Council of Economic Advisers as the special adviser to the chairman, as well as a staff economist, from 2017 to 2019.

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