Updated: Jan 13
On November 15th, Biden enacted the 1.2 trillion-dollar infrastructure plan. This bi-partisan legislation will allegedly not only increase the progression of this nation through infrastructure improvements, but also ease the inflation this country is facing. The following is how he aims to distribute a majority of the funds, according to a white house fact sheet.
$55 billion to expand access to clean drinking water for households, businesses, schools, and child care centers all across the country.
$65 billion to help ensure that every American has access to reliable high-speed internet through a historic investment in broadband infrastructure deployment.
$110 billion in additional funding to repair our roads and bridges and support major, transformational projects.
$39 billion of new investment to modernize transit.
$17 billion in port infrastructure and waterways and $25 billion in airports to address repair and maintenance backlogs, reduce congestion and emissions near ports and airports, and drive electrification and other low-carbon technologies.
$66 billion in additional rail funding to eliminate the Amtrak maintenance backlog, modernize the Northeast Corridor, and bring world-class rail service to areas outside the northeast and mid-Atlantic.
$7.5 billion to build out a national network of EV chargers in the United States. This is a critical step in the president’s strategy to fight the climate crisis and it will create good U.S. manufacturing jobs.
$65 billion investment includes the largest investment in clean energy transmission and grid in American history.
$50 billion to protect against droughts, heat, floods and wildfires, in addition to a major investment in weatherization.
$21 billion clean up Superfund and brownfield sites, reclaim abandoned mine land and cap orphaned oil and gas wells.
Most of these approaches appear to have strong results in foresight, but one big issue will be the funding of the plan. In such regard, as stated in a white house fact sheet, it will be funded by $250 billion in unused coronavirus relief funds and $53 billion in unused unemployment insurance and sales from strategic petroleum reserves. This works because Biden seems to think all money is free. We don’t need any more covid recovery funds, or need to replenish our federal reserve or anything. The surplus is used to further his agenda on a deal that gathers high speculation at the beginning signs of high inflation. Since we are currently struggling with the prices of petrol, common goods and food, we won't have any issue when our taxes are raised to pay for this “once in a generation deal” as Biden puts it. In addition to those “current funds”, the rest will come from 400 billion dollars obtained by “cracking down” on tax evaders. However, rather contradicting such claim, the congressional budgeting office reported that “cracking down” will only produce about 120 million. But I’m sure he can come up with that extra 380 million through the purchase of more bonds through the department of treasury, increasing the money supply while failing to stabilize the Fed’s balance sheet. In addition to this $1.75 trillion “build back better” program that recently passed through the house, there is much speculation that we will see an even larger deficit in the next ten years.
While explaining this infrastructure deal, he commonly references China in terms of development – a communist country that suppresses its people by paying the mass population minimal wages to benefit the super wealthy. Biden said this deal will create millions of jobs, but I’m sure most of them will be low- to middle-class wages for heavy labor in high cost areas, creating poor living quality to benefit only the wealthy, large corporations backing his administration.
I believe all the areas he hopes to benefit really do need improvement in the country, but they should be on an agenda unfolding slowly within the local economy measures for affordability, and improved quality of life. Throwing all this money into one short, nation-wide project at once will only bottleneck and hurt the blue-collar working class. Ten years is a long time, but it still seems a little pushy. With signing such a large bill, while some areas may prove worthwhile, others may not.
I hope the ROI proves to be positive and we can afford it without major inflation and economic damage, but with the track record of Joe Biden or the progressive agenda in general, it is hard not to be skeptical. The last brilliant “deal of the century” was when Clinton reduced mortgage rates to almost nothing at all, so that everybody could buy a house they couldn't afford. It resulted in the huge 2008 crash that took years to recover from.
That said, I’m neither trying to credit or discredit the decision in my views. I’m just critically analyzing. Improved infrastructure is beneficial and necessary. Speaking from personal experience, I am surprised at the advancement other countries seem to have over us in terms of airports and transport systems. America can really use this improvement.