Knowledge@Wharton May 11, 2021
The American Families Plan (AFP) that President Joe Biden announced on April 28 has understated its cost by nearly $700 billion, will leave the government more indebted, and will lower economic growth in the 10-year budget window. But the administration’s proposals for free education would pay off in the long run, according to Richard Prisinzano, director of policy analysis at the Penn Wharton Budget Model. “It is extra debt now, but there is a productive effect down the line that will offset some of that,” he said in an interview on the Wharton Business Daily radio show that airs on SiriusXM. (Listen to the podcast above.)
Between 2022 and 2031, the AFP would cost $2.5 trillion and not $1.8 trillion...
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