Noel Andrés Poyo joined the Treasury Department as Deputy Assistant Secretary for Community Economic Development in the first weeks of the Biden administration. He has played a key role in policy development and operational leadership of more than $80 billion in pandemic response and community investment programs. In an exclusive dialogue with LPO, Poyo talks about how the Democratic government faces this decisive year economically, with the focus on the Latin community and the challenge of Bidenomics, something that is proving elusive to Biden and impacts his intention of vote.

Previously, Poyo - an honors Yale graduate - was Executive Director of NALCAB, representing and serving a diverse national network of more than 120 Latino-led community and economic development organizations in more than 40 states and the District of Columbia.

Biden festeja en soledad una economía resiliente y culpa a la polarización política por el malhumor social

The economy is resisting a recession, unemployment is at historically low levels and inflation is declining. Why does the economy continue to be a government weakness in polls?

The outlook for the US economy seemed bleak in early 2021, with professional forecasters expecting high unemployment to persist and output to remain well below trend. But today that pessimism has been proven wrong, especially for those households that are too often left behind. Now the typical middle-class American house has more wealth, higher income, and more purchasing power than before the pandemic, because wages have increased more than prices since 2019. Today the nuclear family can buy the same basket of goods and services as in 2019, but now they have almost $1,000 left to save or spend. This is due to the policies of the Biden administration, starting with the American Rescue Plan and continuing with a historic trifecta of legislation: the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Reducing Inflation Act.

Of course, we know there is still work to do. At Treasury and throughout the administration we are committed to engaging with the Latino community to understand and learn about their needs.

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But as Secretary Yellen recently said in Boston, despite how far we've come, we know there's still important work to do. For too many families, the prices of important goods and services (such as food, public services, rent, and prescription drugs) are high. At the Treasury Department, and across the administration, we are using every tool at our disposal to reduce these costs so families have more room to breathe.

One of the focuses of the Biden administration was Latinos and minorities, seeking to encourage jobs precisely in the sectors where they have the greatest participation. Do you feel that Hispanics see these policies have reached them?

COVID-19 pandemic caused disproportionate harm to Latino businesses and minority communities. At a decisive time, Latinos were more likely to lose their jobs and work in frontline jobs that increase their health risk. Latino unemployment peaked at nearly 19% in 2020. Addressing a post-pandemic recovery, the Biden-Harris administration took important steps to build a more fair economy. And we know these policies are working for the Latino community: nearly 25% of all new entrepreneurs in 2021 were Latino. During the pandemic and recovery, the average revenue growth rate was 25% for Latino employers. According to the White House, around 4 million jobs have been created for Latino workers. And Latino unemployment hit a record low last year. Of course, we know there is still work to do. At Treasury and throughout the administration we are committed to engaging with the Latino community to understand and learn about their needs.

Latinos are a very important workforce and are creating wealth like no other ethnic group in the country. Do you agree that the future of the US economy depends on Latinos?

Latino workers are vital to the American economy. According to a report published by the Stanford Latino Entrepreneurship Initiative (SLEI), the United States is home to more than 62.5 million Latinos, representing 19% of the US population. With economic output of $2.8 trillion, there are approximately 5 million Latino-owned businesses across the United States, generating more than $800 billion in annual revenue. That is why the Treasury and the Biden administration have prioritized increasing capital and clients for Latin companies and entrepreneurs. Looking ahead, we will continue to strive to sustain the small business boom we have seen among Latino workers.

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What are the Treasury's plans, or what do you want to implement in 2024, specifically for the Hispanic community?

Right now, we are focused on implementing the Inflation Reduction Act in an equitable way that allows all Americans to share in the benefits of the transition to a green economy. Many of the IRA incentives will directly benefit Latino families by reducing their energy costs. Thanks to President Biden's Investing in America agenda and incentives to add new clean energy to the grid, a family will save hundreds of dollars a year on their energy bills. Companies will be able to take advantage of programs to reduce their energy costs by improving energy efficiency in their facilities.

President Biden's Inflation Reduction Act also provides direct assistance to American families, investing in their homes to reduce their energy bills and protect themselves from future volatility in fossil energy prices. The Inflation Reduction Act also includes new ways to access these credits, including direct payments and simpler mechanisms for selling and transferring them, which will help ensure that community organizations, schools, and state and local governments benefit. For example, a school district could use direct payments to install solar panels, reducing the district's energy bills so that more resources are available for teachers. The transition to clean energy will also create good jobs, including opportunities for Latino families, businesses, and communities.

Now the typical middle-class American house has more wealth, higher income, and more purchasing power than before the pandemic. Because wages have increased more than prices since 2019, today a family can buy the same basket of goods and services as in 2019.

What areas do you think the participation of Latinos in the country's economy could be enhanced in? Where are they most needed?

During this administration we have taken important steps not only to recover, but also to build a more fair economy. And although there is more to do, we have made progress. Looking ahead, we are focused on several initiatives that will help improve Latino participation in our economy.

Such as...

One, Latino small business owners can get support to hire and expand their businesses through programs like the State Small Business Credit Initiative. They can also get loans through Latino-owned and served financial institutions, such as through the Emergency Capital Investment Program and the CDFI Fund, to which this administration is putting historic levels of investments. Recently, the Treasury has updated the certification application for community development financial institutions to promote responsible lending to financially ignored communities.

There is something about the tax aspect, right?

Yes, we are also modernizing our tax system to emphasize access and delivery of benefits for the most vulnerable people. And Latino families will benefit from our efforts to modernize the tax system and lower energy costs thanks to the Inflation Reduction Act, one of the most important economic investments throughout generations.