Bill Overview
Title: Protecting Americans’ Savings Act of 2022
Description: This bill directs the Department of the Treasury to report on the effects of inflation on the value of individuals' savings and the feasibility of raising the current individual limit on inflation-protected Treasury Series I Savings bonds. (Currently, there is an annual purchase limit of $10,000 for electronic bonds and $5,000 for paper bonds.)
Sponsors: Rep. Mooney, Alexander X. [R-WV-2]
Target Audience
Population: People with savings affected by inflation globally
Estimated Size: 170000000
- The bill specifically aims to address the effects of inflation on savings.
- Inflation affects all individuals who have savings, such as savings accounts, retirement funds, and investments.
- The focus is on inflation-protected Treasury Series I Savings bonds, which suggests direct implications for those who invest in or consider investing in these bonds.
Reasoning
- The focus of this bill is on individuals who are currently utilizing or are interested in utilizing inflation-protected savings vehicles such as the Series I Savings Bonds. Therefore, the simulated population will include individuals actively saving and investing, spanning varied income levels and savings habits.
- Considering the policy's specific impact on Series I Savings Bonds investors, and the broader impact on all savers in an inflationary environment, both direct and indirect effects will be explored.
- The policy budget is relatively small given the target population, implying limited reach and modest changes in incentives or savings limits.
- The commonness scores reflect how typical the interviewee's profile is across the general US population of savers affected by inflation, with more common profiles being prioritized.
Simulated Interviews
Financial Advisor (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I appreciate the government's effort to review the impact of inflation on savings.
- Increasing the limit for Series I Bonds would allow me to hedge more against inflation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Software Engineer (Austin, TX)
Age: 30 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- Knowing more about I Bonds and their safety would be beneficial for risk management.
- I haven't saved in I Bonds yet, but inflation protection sounds appealing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Retired (Miami, FL)
Age: 65 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- A higher limit on I Bonds would help secure my retirement funds against inflation.
- It's crucial for fixed income earners to have such protections.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 4 |
| Year 10 | 9 | 3 |
| Year 20 | 8 | 2 |
Freelancer (Los Angeles, CA)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I don't currently save in bonds, but this could be a good starting point.
- Inflation is worrisome as expenses keep rising faster than income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
High School Teacher (Chicago, IL)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Increasing the bond purchase limit might entice me to invest more securely.
- I need alternatives to keep up with the inflation rate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Graduate Student (Seattle, WA)
Age: 24 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I am unlikely to buy bonds now, but understanding inflation options for future savings is useful.
- Rent and day-to-day expenses are my immediate concerns.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 4 | 4 |
| Year 5 | 4 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 5 | 3 |
Small Business Owner (Phoenix, AZ)
Age: 60 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- This report might help diversify family savings into safer options.
- Currently, business and real estate are my inflation hedges.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Nurse (Boston, MA)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Inflation-protected options like I Bonds should be more accessible and promoted.
- With a stable income, safeguarding savings is critical.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Tech Entrepreneur (San Francisco, CA)
Age: 35 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- More opportunities to invest in inflation-protected instruments is a plus for diversifying risk.
- Tech investments can be volatile, so inflation protection is appealing.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Factory Worker (Detroit, MI)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 13/20
Statement of Opinion:
- Higher limits on I Bonds are not immediately relevant as disposable income for investment is low.
- Healthcare costs make it hard to save significantly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 4 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5000000 (Low: $3000000, High: $7000000)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The bill demands a report rather than implementing immediate changes, keeping immediate costs low.
- Long-term impacts are largely speculative, depending on any resultant policy shifts.
- Inflation's influence on savings is a significant political and economic concern, suggesting high public interest.