Bill Overview
Title: Reduce Exacerbated Inflation Negatively Impacting the Nation Act
Description: This bill requires the Office of Management and Budget and the Council of Economic Advisers to provide an inflation estimate for each executive order that is projected to cause an annual gross budgetary effect of at least $1 billion. The estimate must determine whether the executive order will have no significant impact on inflation, a quantifiable inflationary impact on the consumer price index, or a significant impact on inflation that cannot be quantified at the time the estimate is prepared. The requirement does not apply to executive orders that (1) provide for emergency assistance or relief at the request of any state or local government or an official of the government, or (2) are necessary for national security or the ratification or implementation of international treaty obligations.
Sponsors: Rep. Stefanik, Elise M. [R-NY-21]
Target Audience
Population: People affected by inflation and subsequent economic stability
Estimated Size: 330000000
- The global economy is interlinked, and inflation within the US can have ripple effects worldwide due to interconnected trade, investment, and financial systems.
- The bill focuses on understanding how US executive actions impact inflation, an issue that affects purchasing power, savings, and economic stability.
- While the immediate implementation affects US executive orders, these orders can influence international markets and foreign economies depending on the nature of the policy and interconnected economic activities.
Reasoning
- The policy impacts will vary widely across the US population due to diverse economic conditions, job sectors, and regions.
- Many individuals will not notice immediate changes from this policy as it deals with executive orders' inflationary potential, which doesn't immediately trickle down to personal livelihoods.
- Long-term benefits are likely to manifest in more stable economic conditions rather than instant improvements in personal finances.
Simulated Interviews
Financial Analyst (New York City, NY)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I'm always monitoring how economic policies affect the markets. Knowing the inflationary potential of executive orders helps better plan investments.
- This policy seems like a step towards transparency and accountability, but I'm unsure how directly it will affect my day-to-day life.
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 | 6 |
| Year 20 | 8 | 6 |
Software Engineer (Los Angeles, CA)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- Inflation has been a concern with rising tech stock prices. Clarity on policy inflation impact is crucial.
- This act makes the executive branch accountable, which is essential for long-term economic stability.
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 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Small Business Owner (Houston, TX)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- Food prices often seem unpredictable; knowing potential inflation from policies would help me plan pricing better.
- However, unless policy details are made public, I'm not sure it will benefit small businesses like mine.
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 | 7 | 5 |
| Year 20 | 7 | 5 |
Retired Auto Worker (Detroit, MI)
Age: 55 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Inflation eats away at my fixed income savings. If executive orders can be scrutinized for inflation impacts, it's reassuring.
- However, this doesn't directly change healthcare costs, which are my main concern.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Healthcare Worker (Miami, FL)
Age: 31 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 14/20
Statement of Opinion:
- This policy might help keep my savings from depreciating due to unforeseen inflation.
- While informative, whether it impacts hospital budget allocations or my salary growth isn't clear yet.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
Teacher (Chicago, IL)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 18/20
Statement of Opinion:
- I hope this policy leads to better budgeting in executive decisions, which could mean more stable funding for schools.
- I want policies that focus on reducing educational and living expenses directly.
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 | 7 | 5 |
| Year 20 | 7 | 5 |
College Student (San Francisco, CA)
Age: 22 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- For students like me, understanding how policies affect inflation is crucial as it influences loan interest rates.
- While more informed, it likely won't immediately decrease my student loans.
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 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Nurse (Phoenix, AZ)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 10/20
Statement of Opinion:
- Inflation impacts my cost of living; policies that prevent inflation are needed.
- I support the policy but hope it is just one of many actions to stabilize the economy.
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 | 7 | 5 |
| Year 20 | 7 | 5 |
Construction Manager (Dallas, TX)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 13/20
Statement of Opinion:
- Building costs are volatile; knowing potential inflationary effects of policies helps me bid projects more accurately.
- Yet, it must translate into real-world cost savings to be truly beneficial.
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 | 7 | 6 |
| Year 20 | 8 | 6 |
Graphic Designer (Seattle, WA)
Age: 37 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 12/20
Statement of Opinion:
- Inflation concerns me, especially with travel. Transparency in executive orders could lead to more stable pricing.
- While good, this transparency doesn't necessarily lower immediate travel costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5200000 (Low: $3200000, High: $7200000)
Year 3: $5400000 (Low: $3400000, High: $7400000)
Year 5: $5800000 (Low: $3600000, High: $7800000)
Year 10: $6500000 (Low: $4000000, High: $8500000)
Year 100: $15000000 (Low: $10000000, High: $20000000)
Key Considerations
- The cost of implementing and maintaining the required analytical frameworks for inflation estimation.
- The potential for increased administrative burden on the Office of Management and Budget and the Council of Economic Advisers.
- The importance of accurate, timely information to manage inflation effectively, which could ultimately lead to broader economic impacts.