Although widely promised to create jobs and stimulate the economy, analysis done by the University of Pennsylvania shows that the trillion dollar infrastructure bill presented earlier this week may not create any significant amount of economic growth.
Early this week, a group of ten senators from both sides of the aisle presented a carefully constructed infrastructure bill that had been in-work for months. The bill is meant to improve infrastructure nationwide including roads, bridges, internet, public transit, and electrical utilities. According to Reuters.com, the final price tag of the bill is $1.2 trillion, with $550 billion of that being new spending and $450 billion being previously approved spending.
The bill has been largely touted as both an infrastructure improvement bill with the added bonus of generating millions of American jobs and reducing government debt. However, analysis by the University of Pennsylvania’s Penn-Wharton Budget Model shows that the infrastructure proposal would have no significant effect on the GDP in the short or long term (Orwellian Post).
Other findings of the analysis show that the bill would in fact raise government debt by 1.3% by the end of the budget window in 2031 and would lead to a drop in productive private capital. This is in direct contrast to the claims made by the White House Fact Sheet that claimed that the bill will “generate significant economic benefits.”
President Joe Biden and Senate Democrats were pushing for a much larger bill, while many Republicans pushed back saying that the additional spending was unnecessary and wasteful. Eventually, after months of careful negotiations, the senators presented something they think that both Republicans will accept and Joe Biden will sign.
However, even though the bill was presented by a bipartisan group, some Republicans in the Senate still have concerns. Mike Lee is one of the Republican senators that has issues with the amount being spent, saying “All is not well with the way we spend money” (Reuters).
Senators are now rushing to pass the bill in order to pass it over to the House of Representatives for a vote. House Democrats have been vocal that the bill is too small and want to pair this current bill with another $3.5 trillion bill that includes ‘human infrastructure’ which includes things like education, housing, and climate change (CNET). The bigger bill would be passed through a process called budget reconciliation and would only require a simple majority.
ARTICLE: ABBY RANCOUR
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: WASHINGTON POST
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