Laura D’Andrea and Lenny Mendonsa Berkeley
As of early 2022, the fate of US President Joe Biden’s ambitious plan to achieve a fair and sustainable economic recovery is uncertain. If you do not pass the $ 1.75tn Build Back Better (BBB) method, you will lose a great deal of chance. The law will boost the economy when the risk of Covid-19 increases. Without it, Goldman Sachs predicts that US first-quarter GDP growth could be a completely lower percentage point than before.
More importantly, investing in BBB reduces child poverty. Help working families struggle to balance care and work responsibilities. Address climate risks and provide a healthy foundation for sustainable and equitable prosperity over the next decade. These forms of public spending are widespread, not just among democratic voters.
But so far, two Democrats from the Senate and Republican states are interfering with meaningful federal action. Meanwhile, California, which has generated a historic budget surplus from a strong economy and record capital gains tax revenues, is now investing heavily to support children, working families, climate mitigation and adaptation efforts. It provides models for policy makers in other states and at the national level.
Governor of California Gavin Newsom’s 2022 budget includes income and infant tax deductions, paid family vacations, subsidized childcare, two free meals and after-school and after-school for students from kindergarten to high school. Includes a summer program and a one-year free kindergarten. If the BBB is passed, the federal child tax credit will be increased and expanded to prevent working families with incomes of less than $ 300,000 from spending more than 7% of their income on childcare, providing up to four. Add important support to California’s efforts. Weeks of paid parental leave for both hired workers and self-employed people. The United States is now independent as the only wealthy country without paid parental leave at the national level (the Family and Medical Leave Act of 1993 provides for 12 weeks of unpaid family leave).
A key element of the California Parent-Child Agenda is a universal transition kindergarten program that will be phased in to include all 4-year-olds by 2025-26. Preschool programs are a very effective investment and bring widespread benefits to participants – stronger academic performance and better health to higher incomes, more stable families, and greater social mobility in later years. Up to sex. Through the BBB, the Byden administration will fund existing states to cover the federal share of the cost of a voluntary free pre-K program for all children, regardless of income or other eligibility requirements. And aims to build a federal preschool program.
The United States is doing less than any other developed country to reduce child poverty. Even after benefiting from current government programs and taxes, child poverty remains at nearly 20%. To make matters worse, children experience the highest poverty rates of all age groups in the United States, and children raised in poverty are more likely to become poor in adulthood. Poverty itself (unlike other factors) is known to affect future education, health, income, and criminal activity.
However, this trajectory can be changed by an ongoing child support program in California and the BBB’s increased refundable child tax credit (similar to child cash allowances available in other developed countries). BBB credits alone reduce child poverty by an estimated 40% in a typical year, with the greatest benefit to children in black and Hispanic families.
Education and health are both major determinants of life outcomes, so the California agenda for working families and children includes major investments in both. In 2010, California became the first state to establish a health insurance market, offering subsidized medical care to approximately 1.6 million subscribers at significant discounts. Currently, under Newsom’s 2022 budget, we are ready to become the first state to achieve universal access to health insurance for all residents (regardless of immigration status). And to protect reproductive rights when under attack at the national level and in other states, the budget proposes a set of measures to maintain and improve the availability of these essential medical services. I am.
The 2021 US Rescue Program has significantly subsidized and expanded the eligibility of health insurance programs across the United States. However, this expansion of access would expire without the BBB, which would allocate $ 130 billion to expand Medicaid and reduce premiums for approximately $ 9 million Affordable Care Act participants ($ 600 per year on average). increase. The BBB will also provide additional funding to support the expansion of the state’s health insurance program.
In addition, the BBB will dramatically strengthen the federal government’s ability to leverage purchasing power to negotiate drug price cuts. There is strong bipartisan public support for the federal government to do more to tackle this growing problem. The Office of Management and Budget estimates that BBB’s drug pricing will reduce the federal deficit by $ 297 billion over a decade.
California is also developing new ways to combat rising drug prices. In 2019, Newsom will ask state officials to negotiate prescription drug prices on behalf of the 13 million people covered by Medi-Cal (the state’s Medicaid program) and allow private insurance companies to participate. Signed. And in 2020, he signed the law to set the first state-sponsored generic drug label. While the country’s actions remain thwarted, California shows how governments can use their wallets and bargaining power to make great strides on behalf of working families. It will continue to be a sign of progressive policy in the dark ages.
— Project Syndicate
• Laura D’Andrea, co-chair of the Governor of California’s Economic Advisory Board, is a graduate professor at the Haas School of Business and chairs the Bloom Center Board of Directors at the University of California, Berkeley.
• Lenny Mendonca, Senior Partner Honor of McKinsey & Company, is a former Chief Economic and Business Advisor to Governor of California Gavin Newsom and chairs the California High-Speed Rail Authority.
http://www.gulf-times.com/story/708164/A-pro-family-agenda-for-America-starts-in-Californ American kinship proceedings begin in California