Last month, the Biden administration issued a $1.9 trillion Covid-19 rescue plan with the aim of quickly getting the economy back on track. Now, officials have begun to increase the speed limit for a long time.
The approximately $2.3 trillion spending proposal announced on Wednesday will invest in infrastructure over the next ten years. Officials say this will increase economic productivity, such as upgrading public transportation to make it easier for commuters to find jobs, or improving broadband workplaces in rural areas. technology.
Economists say these types of changes can make the economy grow faster in the long term and improve living standards without causing worrying inflation.
But critics, including business groups and many Republican lawmakers, say the government’s plan to pay for these measures through tax increases will curb investment and weaken the momentum for economic growth. It was pointed out that the plan would increase the federal budget deficit at least temporarily. Some observers say that certain parts of the plan will not do much to increase productivity and change the long-term growth trajectory of the economy.
“It depends on investment,”