National Economic Advisor Lael Brainard Discusses Reducing Expenses for American Consumers

President Biden’s Efforts to Lower Costs for American Families

President Biden’s Efforts to Lower Costs for American Families

Introduction: Prioritizing American Consumers

Hosted by the Urban Institute and the Consumer Federation of America

As Prepared for Delivery

Thank you all for the important work you do on behalf of American consumers every day.

The President’s Economic Priority: Lowering Costs

President Biden sees our economy through the eyes of middle-class families like the ones he grew up with in Scranton, Pennsylvania. He knows that a lot of families are feeling squeezed by the cost of living. That’s why the President’s top economic priority is lowering costs.

Lowering Costs Across Every Aspect of Family Budgets

The President has directed his Administration to use every available tool to lower costs for families in each important area of their budgets. This plan is already putting thousands of dollars back in many families’ pockets on everything from insulin, to inhalers, to home heating, to credit card fees, to lower gas prices.

Extending Savings to More Americans

The President is fighting to extend these savings to more Americans who stand to save thousands of dollars more each year.

Building an Economy that Prioritizes American Families

The question now is: Do we want to continue fighting to build an economy that gives families more breathing room by lowering costs? Or do we want an economy that gives big corporations and the ultra-wealthy special breaks and raises costs for everyone else?

The President’s Comprehensive Plan

Many Republicans in Congress take every opportunity to call attention to inflation, but they haven’t offered a single solution to bring costs down. Instead, they want to take us backwards. The President has a comprehensive plan to continue lowering costs across the economy, from groceries and gas to healthcare and housing to transportation and ticketing.

Summary of Cost Savings

Today, we are sharing a summary of these actions that shows in detail the cost savings in every area of the family budget from the President’s initiatives.

Understanding Inflation and Cost Increases

The Impact of the Pandemic

We know from the data that the pandemic drove the rise in inflation that has squeezed Americans over the past few years. Every country saw a similar surge in inflation as a result of the global economy shutting down and supply chains breaking.

Addressing Supply Chain Disruptions

The President took action in partnership with the private sector to address supply chain bottlenecks and mitigate the impact of these disruptions. Today, supply chains are largely back to normal, and inflation has fallen by about two-thirds.

Corporate Pricing Power and Market Competition

In some industries, high pricing power reflects weak market competition. The President’s efforts to lower costs for families have gone hand in hand with his actions to strengthen market competition.

Lowering Grocery Costs

Challenges in the Grocery Sector

Grocery prices rose during the pandemic due to supply chain disruptions. Despite improvements in supply chains, grocery prices have been slow to come down, and grocery store margins remain elevated.

President Biden’s Call to Action

President Biden has called on large grocery chains to pass along their savings to consumers and used his State of the Union Address to spotlight the high prices set by many packaged food companies.

Progress and Government Assistance

Some grocery stores are lowering prices, and signs show that grocery prices may be turning a corner. The Administration has provided assistance such as Summer EBT grocery assistance for millions of children.

Lowering Health Care Costs and Drug Prices

Victories in Health Care Affordability

President Biden secured passage of the Inflation Reduction Act (IRA) that has brought down the price of insulin to $35 a month for seniors on Medicare. The President has proposed extending these savings to younger Americans who use insulin.

Impact on Prescription Drug Costs

Starting next year, out of pocket prescription drug costs will be capped at $2,000 for seniors—saving millions of people money. Medicare is now able to negotiate lower prices for prescription drugs.

Benefits for American Families

The President’s efforts to lower health care costs not only help family budgets but also lower the federal deficit. These initiatives are saving millions of Americans money on prescription drugs and health insurance premiums.

Read More of this Story at – 2024-06-20 14:55:05

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