The infrastructure and family plans reveal over $4 trillion in new investments in the US economy. The economic gap with rival economies is poised to increase.
Last Friday marked the end of the first one hundred days since President Biden took office. The new administration in Washington has delivered a record number of executive orders, mostly to reverse the course of Donald Trump’s policies.
In terms of how Americans view the President, 50% approve of his policies, while 39% disapprove. This is in sharp contrast to what Trump delivered in his first one hundred days in office.
However, the first one hundred days may turn out to be the easiest ones during Biden’s term. The new administration moved rapidly to deliver fiscal stimulus, and the effects are visible – equity markets are at record highs, the dollar has declined, thus favouring exports, and the economy grew by more than 6% in the first quarter of the year.
Infrastructure and Families Plans to Further Contribute to Economic Growth
More stimulus is in the pipeline, this time in the form of long-term projects. Infrastructure and families plans will exceed $4 trillion in spending, according to the most recent statements.
The long-term infrastructure plan focuses on areas such as buildings and utilities, transportation, in-home care, and jobs and innovation. The families plan focuses on child and family support, education, tax credits and investments to collect more revenue via the IRS.
A hundred billion dollars alone will be invested in upgrading the power grid and clean energy. Another hundred billion goes towards high-speed broadband. Innovation in clean energy will benefit from $46 billion in the form of investments to facilitate the transition to greener America.
All these translate into more jobs to be created by the US economy in key areas. One day ahead of the Non-Farm Payrolls (NFP) report for the month of April, the estimates are that the US economy added close to a million new jobs in the previous month.
The new plan will create even more jobs, aiding the economic recovery and building a solid base for future growth. The gap that already exists between the United States economy and others is likely to increase in the future. If that is the case, financial markets will reflect the new fundamental realities in a post-pandemic world.