Bill Overview
Title: Combatting Painful Inflation (CPI) Act
Description: This bill directs the National Science Foundation to commission a study on the effects of inflation. Among other requirements, the study must measure the economic impact of inflation on the American people, including an analysis of cost-of-living impacts; assess how the increase in inflation has harmed the American workforce through decreased, less valuable wages; evaluate the impact of inflation on rural and underserved communities throughout the country; and make recommendations to Congress on the impact of further government spending with regard to inflation.
Sponsors: Rep. Kim, Young [R-CA-39]
Target Audience
Population: People affected by inflation
Estimated Size: 331000000
- Inflation is a global economic phenomenon that affects people worldwide by decreasing the purchasing power of currency.
- General inflation leads to increased prices for goods and services, affecting basic daily needs like food, housing, and transportation.
- Every individual who engages in economic transactions using fiat currency is impacted by inflation.
- Workforce globally can suffer wage erosion during inflationary periods, affecting their economic wellbeing.
- Inflation can particularly strain rural and underserved communities, which might have less financial resilience.
Reasoning
- Due to the limited budget, the policy primarily focuses on studying the effects rather than direct interventions. It is unlikely to have an immediate direct impact on individuals' financial situations.
- The Cantril self-anchoring striving scale is used to measure subjective wellbeing, which may not necessarily improve in the short term due to a policy focused on study rather than action.
- Given inflation affects everyone but impacts vary, some individuals may perceive indirect benefits or a sense of hope from policymakers addressing these issues.
- Urban and rural experiences with inflation differ, thus, selected interviews should include diverse geographical and socioeconomic perspectives.
- Inflation awareness can prompt individuals to take personal mitigative actions, although this is beyond the policy's direct scope.
Simulated Interviews
School Teacher (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I think it's good that they're actually studying inflation's impact, I feel the pinch every day.
- I don’t expect much else to change for me directly, but maybe they’ll come up with something that helps down the road.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Registered Nurse (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- With high costs of living in NYC, inflation hits hard.
- I'm skeptical about a study changing things, but the recommendations might eventually help.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Farmer (Rural Nebraska)
Age: 58 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- Costs have skyrocketed - seeds, fuel, everything! It's about time someone pays attention.
- I’m hopeful they’ll find solutions that help farmers like us.
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 | 7 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Barista (Austin, TX)
Age: 23 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 18/20
Statement of Opinion:
- My wages don’t stretch as far anymore, so I have to be creative with my budget.
- Better studies could mean intelligent policies; I'm cautiously optimistic.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Retired (Rural Kentucky)
Age: 66 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- Prices rising faster than Social Security adjustments worries me.
- It’s good they might find solutions to help those on fixed incomes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Software Developer (Los Angeles, CA)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- Inflation makes planning my financial future uncertain.
- Hopefully, better insights lead to better policies, but change may take time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 8 |
Construction Worker (Atlanta, GA)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 18/20
Statement of Opinion:
- I see prices going up faster than my wages.
- All this talk is good, but I'm not that hopeful anything will change quickly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Small Business Owner (Detroit, MI)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Inflation is affecting my bottom line. Anything that helps understand it is beneficial.
- It’s possible this study could support better fiscal policies eventually.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Freelance Graphic Designer (Seattle, WA)
Age: 38 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- With variable income, inflation makes budgeting harder.
- I’m interested to see what recommendations they make; it could lead to positive change.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Retired Engineer (Phoenix, AZ)
Age: 70 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Pensions don’t stretch as much with prices going up.
- I hope they find ideas that support financially vulnerable groups like retirees.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $10000000)
Year 2: $5000000 (Low: $3000000, High: $10000000)
Year 3: $5000000 (Low: $3000000, High: $10000000)
Year 5: $5000000 (Low: $3000000, High: $10000000)
Year 10: $5000000 (Low: $3000000, High: $10000000)
Year 100: $5000000 (Low: $3000000, High: $10000000)
Key Considerations
- The study's recommendations may guide significant fiscal reforms if inflation remains a prominent issue.
- Understanding inflation's impact on various demographics can lead to more equitable economic policies.