American Economics Thread

[voyager1]

Please, Log in or Register to view URLs content!

Joe Biden is set to consider a plan from his top advisers to plough roughly $3tn in additional government spending into the US economy for investments in infrastructure, clean energy and education, two people familiar with the matter said on Monday.

Biden wants to spend another 3 trillion dollars for infrastructure wow!
China better stop accepting dollars, this is galactic scale printing

 

[weig2000]

Please, Log in or Register to view URLs content!

Biden wants to spend another 3 trillion dollars for infrastructure wow!
China better stop accepting dollars, this is galactic scale printing

The spending might be spread across a decade, otherwise it's hard to imagine how the US is going to invest that much money within a very short time period. Infrastructure takes careful planning and the US does not have nearly enough manpower to execute many large-scale infrastructure projects, without causing a lot of waste.

 

[voyager1]

The spending might be spread across a decade, otherwise it's hard to imagine how the US is going to invest that much money within a very short time period. Infrastructure takes careful planning and the US does not have nearly enough manpower to execute many large-scale infrastructure projects, without causing a lot of waste.

Good point on spreading the spending over time.
They are also trying to make a bill for taxing the rich to cover the infrastructure spending.

 

[B.I.B.]

Good point on spreading the spending over time.
They are also trying to make a bill for taxing the rich to cover the infrastructure spending.

I guess they could become big buyers of Aussie ore then?

 

[siegecrossbow]

The spending might be spread across a decade, otherwise it's hard to imagine how the US is going to invest that much money within a very short time period. Infrastructure takes careful planning and the US does not have nearly enough manpower to execute many large-scale infrastructure projects, without causing a lot of waste.

I think governmental/private red tape is a bigger hurdle for U.S. infrastructure projects than the actual engineering aspect. A lot of GOP folks probably relish the idea of messing up Biden's projects. Just look at how they responded to Biden stumbling on the Air Force One stairs. This attitude is very unhealthy.

 

[gelgoog]

...
Biden wants to spend another 3 trillion dollars for infrastructure wow!
China better stop accepting dollars, this is galactic scale printing

Trump also said he was going to build infrastructure and then basically did nothing.

 

[AndrewS]

Good point on spreading the spending over time.
They are also trying to make a bill for taxing the rich to cover the infrastructure spending.

If it is going towards infrastructure, it should be a good thing in the long run

 

[weig2000]

Good point on spreading the spending over time.
They are also trying to make a bill for taxing the rich to cover the infrastructure spending.

I think governmental/private red tape is a bigger hurdle for U.S. infrastructure projects than the actual engineering aspect. A lot of GOP folks probably relish the idea of messing up Biden's projects. Just look at how they responded to Biden stumbling on the Air Force One stairs. This attitude is very unhealthy.

If it is going towards infrastructure, it should be a good thing in the long run

It takes long-term planning and funding commitment, at least a decade, possibly longer to make a difference. Think about the Eisenhower Interstate Highway System, and China's multi-decades investments in infrastructure. In fact, if the US is ambitious, it could become an opportunity to reshape the American landscape and even revive American manufacturing, considering the US's old and legacy infrastructure.

However, does the US still have what it takes to get the job done? It's very doubtful.

• The partisanship can get in the way, given how divided the politics are and the 4-year election cycle.
• The return is low and it takes significant public spending over many years; the US's market fundamentalism can get in the way.
• The red-tapes, environmental protectionists, and the NIMBYs can all bog down the process
• The experiences, expertise and manpower - the US had to import bridges from China to build bridges in NYC and San Francisco.

It's a headache to just think about all these challenges.

 

[SilentObserver]

How much would one expect home loans to up by if Bond rates hit 2% as some are speculating? I also read that Morgan Stanley estimates American households had ab excess of 2.3 trillion dollars in savings. So why the handouts.

That $2.3 trillion isn't evenly distributed across the income spectrum. Biden was talking about a K recovery where the lower income groups are hit disproportionately harder while higher income groups will recover fairly smoothly.

Many retail and informal sector workers who didn't have much savings to begin with had their incomes reduced or eliminated. The stimulus is really meant to keep these people afloat.

Those with the ability to work from home and in sectors insulated from shutdowns saw their potential to save go up. Less money spent on transportation, dining out, personal upkeep, recreation, entertainment, increased bulk buying, some moving back in with family or to cheaper locations due to remote work, and increased stock prices.

For many 2020 had been a very good year financially, a rare opportunity to come by.

 

[antiterror13]

The spending might be spread across a decade, otherwise it's hard to imagine how the US is going to invest that much money within a very short time period. Infrastructure takes careful planning and the US does not have nearly enough manpower to execute many large-scale infrastructure projects, without causing a lot of waste.

Let China build the infrastructure in the USA, it will get done, no talk just get done and cheaper