The Biden administration and Congressional Democrats have worked hard over the last few years to grow the middle class and bolster our economic resilience. Because of policies passed by Democrats, we’re making progress in our ongoing efforts to bring down costs and relieve financial pressures on American families, workers, and small businesses.
We must now build upon these successes with more forward-looking economic policies that promote a sustainable economy, create strong career paths jobs for all Americans, and invest in children and families.
The Joint Economic Committee Democrats’ response to the annual Economic Report of the President highlights policies that move us towards these goals. This report builds on the work done by the Committee over the last year to analyze the economy and highlight effective economic policies. Summaries of each of the report’s chapter are provided below.
Chapter 1: The Economy Continued to Expand at Steady Pace, Creating Millions of Jobs
The first chapter highlights the remarkable economic progress that the United States continued to make in 2023. The past year saw above-average economic growth to end the year, continued progress on inflation, a robust jobs market, and rising incomes that have more than outpaced inflation since January of 2021. The chapter also points out the budgetary risks posed to the U.S. economy by continued Republican tax cuts to the wealthy that drive up deficits without helping working families. Key takeaways from the chapter include:
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The United States has added over 15 million jobs under President Biden, and the unemployment rate has remained at or below 4% for the last 30 months.
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The United States has added over 1.6 million new construction and manufacturing jobs under President Biden, reversing a decades-long decline.
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Wages have grown faster than prices, particularly for low and middle-income earners.
Chapter 2: Boosting U.S. Output and Innovation
The second chapter highlights how recent historic federal investments are helping to build a stronger and more resilient U.S. economy, including the boom in American manufacturing; the establishment and maintenance of U.S. leadership in artificial intelligence (AI); growing trade with Canada and Mexico; and productivity growth. Key takeaways from the chapter include:
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Federal investments have sparked a renaissance in American manufacturing, with manufacturing construction spending surging to record highs.
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An “all hands on deck” approach is needed to maintain U.S. leadership in AI and ensure its benefits are widely shared.
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Additional investments in our land ports of entry would allow for more efficient cross-border commerce and yield significant economic benefits.
Chapter 3: Climate Risks and Opportunities in the Energy Transition
Climate change presents physical and transition risks and opportunities as the world moves away from fossil fuels. The 2024 Economic Report of the President (ERP) discusses these topics with a focus on understanding the path toward the clean energy transition and how it can be achieved. The third chapter highlights the benefits of the clean energy transition alongside some underappreciated potential tools to help advance the United States’ climate goals and invest in international climate finance. Key takeaways from the chapter include:
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The significant costs of wildfires, flooding, and extreme heat motivate a range of policy actions.
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Climate risks are making parts of America hard to insure and pushing premiums higher.
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Clean energy jobs can provide pathways into the middle class for a broad set of communities across the country.
Chapter 4: Creating Conditions for Equitable Growth
The fourth chapter highlights how place-based economic development initiatives are providing more communities with a lead role in the nation’s manufacturing renaissance and the clean energy transition. The chapter also details avenues Congress can use to improve its approach, including direct investment in data collection for Territories, targeted investment in Puerto Rico’s grid and renewable energy system, and enhancing Tribal Nations’ access to funds. Key takeaways from the chapter include:
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The Bipartisan Infrastructure Law has spurred the largest amount of funding per capita in states with the greatest need for infrastructure investment
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The CHIPS and Science Act targets underserved communities for new manufacturing hubs and investment incentives
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By blocking funding for these efforts, Republicans are increasing the gap between wealthy regions and those that are struggling
Chapter 5: Supporting Families Today while Investing in Tomorrow
The fifth chapter highlights how policies that support working families and children often have significant, long-term benefits and strengthen the overall economy. One example is the Child Tax Credit (CTC), a proven anti-poverty policy expanded by Democrats in the American Rescue Plan that was transformational for families during the pandemic. Key takeaways from the chapter include:
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The Child Tax Credit (CTC) and early childhood education are essential investments in kids and their families.
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School meals and resilient school infrastructure are vital for students’ health and academic outcomes.
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Proven youth employment programs can grow the economy, expand opportunity, and improve public safety, especially for young people who are neither in school nor working.
Chapter 6: Supporting Workers and Taking on Corporate Power
A lack of competition across the U.S. economy hurts both consumers and workers. Declining competition over many years has led to higher prices, lower wages, poorer working conditions, and reduced mobility for workers. Democrats in Congress and the Biden-Harris administration have taken action to reign in anti-competitive practices, ban noncompete agreements, apply greater scrutiny to mergers, and increase options for consumers and workers alike. Key takeaways from the chapter include:
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Large companies have used their market power to accumulate profits by raising prices, driving inflation up and imposing higher costs on American households.
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Registered apprenticeships provide pathways to stable, well-paying careers while addressing workforce shortages.
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Immigrants can keep the U.S. labor force growing and help boost economic output
Chapter 7: Rebuilding the American Dream and Enhancing Housing Affordability
Low- and middle-income households are struggling to secure affordable housing. This chapter highlights the ways in which states and localities are taking action to modernize their land use and zoning rules and developing new public financing models for construction of affordable units. Key takeaways from the chapter include:
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State and local efforts towards zoning reform can help reshape the U.S. housing market.
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Increasing housing supply alone will not be enough to drive down rents, absent of renter-focused policies.
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The Biden administration and congressional Democrats are taking important steps to end the housing crisis by fortifying HUD programs and ensuring more funding moves to housing.
Both the Democratic portion of the report, and the full report are available below.
