When President Biden took office, he had no choice but to protect Americans from the pandemic. He's been in politics for a long time, but he's never seen anything like this. But now that the dust has settled, he'll throw his first fastball in the park, which could be a huge accomplishment for the Biden administration in the face of low approval ratings.
The House of Representatives passed the infrastructure bill by a vote of 228-206, and it now goes to President Biden's desk to be signed into law. Democrats hope to pass the social spending bill by Thanksgiving, according to Senate Majority Leader Chuck Schumer. Over the next eight years, this bill proposes $1.2 trillion in new federal spending to upgrade highways, roads, and bridges, as well as modernize city transit systems and passenger rail networks. It is the largest federal investment in the country's infrastructure in decades, and it is widely regarded as a major domestic victory for the US president.
It will be paid for in a variety of ways, including unspent emergency relief funds from the Covid pandemic, sales of oil from the Strategic Petroleum Reserve, and stricter enforcement of reporting gains from cryptocurrency investments, implying that the majority of the spending will be paid for without raising taxes. The bill, however, would add about $256 billion to the deficit.
Economists generally agree that the bills would likely boost prosperity and job growth over time. They forecast 0.5 percentage point higher growth in 2022, 0.9 percentage point higher growth in 2023, and stronger growth and 2.4 million jobs by the end of 2025 as spending on road construction and preschools increases. Most importantly, it would significantly increase the government's role in the US economy, potentially increasing Biden's approval rating.
What exactly is included in the $1.2 trillion infrastructure package?
The infrastructure package includes $550 billion in new investments. It's far less than the $2.3 trillion requested by Biden, but it's still large enough to help the US economy.
What's the reasoning behind this move?
As previously stated, President Biden's approval rating has been declining over time. Joe Biden wants to demonstrate through the Infrastructure bill that the government is still a significant organization, and that he is the boss of the group. Few presidents in the past have used a similar type of fiscal tool to save not only the economy but also his popularity. They were able to carry out the plan and earn what they required. I believe the outcome of this bill will shape how future generations remember President Joe Biden.
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