WASHINGTON – President Joe Biden’s roughly $2 trillion infrastructure plan is likely to have significant economic effects, but their exact nature remains uncertain, according to economists.
The plan, which Biden unveiled Wednesday , includes funding for roads, bridges, broadband internet, the electric grid and other projects. The White House says it will create millions of jobs and boost economic growth.
But economists say the plan’s economic impact will depend on a number of factors, including how it is funded, how effective the projects are and how the economy performs in the coming years.
“The economic effects of the infrastructure plan are likely to be positive, but the magnitude of those effects is uncertain,” said Mark Zandi, chief economist at Moody’s Analytics.
One of the biggest uncertainties is how the plan will be funded. Biden has proposed raising corporate taxes and increasing the gas tax to pay for the plan, but it is unclear whether Congress will approve those proposals.
The effectiveness of the projects is another key uncertainty. If the projects are well-planned and executed, they could have a significant positive impact on the economy. But if the projects are poorly planned or executed, they could waste money and have little impact on the economy.
The performance of the economy in the coming years will also affect the impact of the infrastructure plan. If the economy continues to grow, the plan will have a smaller impact than if the economy slows down.
Despite the uncertainties, economists say the infrastructure plan has the potential to have a significant positive impact on the economy.
“The infrastructure plan is a big bet on the future of the American economy,” Zandi said. “It has the potential to create millions of jobs, boost economic growth and improve the quality of life for all Americans.”
Here are some of the specific economic effects that economists expect the infrastructure plan to have:
* **Create millions of jobs.** The White House estimates that the plan will create 2 million jobs per year over the next 10 years. These jobs will be in a variety of fields, including construction, engineering, manufacturing and transportation.
* **Boost economic growth.** The plan is expected to boost economic growth by 0.5% to 1% over the next 10 years. This growth will be driven by increased investment in infrastructure, which will lead to higher productivity and wages.
* **Improve the quality of life for all Americans.** The plan will invest in projects that will make it easier for Americans to get around, access clean water and have access to reliable internet service. These improvements will make life better for all Americans, regardless of where they live or what they do for a living.
The infrastructure plan is a major investment in the future of the American economy. It has the potential to create millions of jobs, boost economic growth and improve the quality of life for all Americans. However, the exact economic effects of the plan will depend on a number of factors, including how it is funded, how effective the projects are and how the economy performs in the coming years..
