Research on the Influence and Optimization of the “Build Back Better” Act on the American Economy

Abstract

The pandemic has become a public health crisis as well as an economic crisis in the United States, actually one of the most substantial national economic crises since The Great Depression. This research analyzes the impacts of the “Build Back Better” Act on the US economy and discusses the optimization strategy of the policy. The research utilizes secondary resources, mainly past research and news articles, to analyze the impacts of the policy and proposes potential strategies that the US government can implement to optimize the “Build Back Better” Act. The analysis discusses inflationary targeting, interest rate control, input subsidy strategy, and the trade-off between the two strategies. This paper aims to provide a solution that can reduce the economic concerns from the establishment of the “Build Back Better” Act and can act as a reference for future adjustments of expansionary policies. This study can be the basis of future studies on whether similar bills by the government during recessions would effectively work as a stimulation to the economy and solve the issues of the current economy.