How to pay for the Biden Infrastructure Bill
Posted On July 7, 2021
The US has one of the highest debt-to-GDP ratios in the world, and the US is a major contributor to global economic growth.
The debt-deficit is projected to hit $19 trillion in 2027, according to the Organisation for Economic Co-operation and Development (OECD).
And with the US still struggling to address a chronic unemployment problem and its aging population, the country’s infrastructure has become a critical component of the countrys economy.
But with the election of President Joe Biden, the US could be facing a $2 trillion debt crisis.
With the US budget in dire straits, Biden has pledged to take the lead in addressing the debt and deficit problems plaguing the US.
In February, the Biden administration released a White House Budget Blueprint, which outlines a number of infrastructure plans that would significantly improve the US economy.
The plan calls for the US to invest $200 billion in the US infrastructure over the next 10 years, a plan that would boost economic growth and create 10 million jobs.
Budget Blueprint, Feb 2018: $200B in infrastructure investments over 10 years to spur economic growth, create 10M jobs.
Source: White House Briefing, Feb 25, 2018 The Blueprint, however, does not address the issue of how to pay the bills for the projects that are proposed.
The US Government Accountability Office (GAO) has already said that it will not provide an estimate of the costs of paying for the infrastructure projects proposed by Biden.
“We have not received any estimates for the proposed infrastructure investments,” GAO Executive Director Michael Roth told the Senate Budget Committee in May.
However, the Office of Management and Budget (OMB) has acknowledged that it is currently evaluating the amount of federal funds allocated to the infrastructure plan.
On Wednesday, OMB Director Mick Mulvaney said that OMB will “review the proposed spending and funding allocations for infrastructure and infrastructure-related functions in the next 12 months.”
“The FY2019 budget is likely to be released in December,” Mulvany said.
In his budget, Mulvay noted that the proposed investments would generate between $100 billion and $200 million annually in the long-run, but the amount could be as much as $200bn.
According to Mulvane, the proposed projects would include new roads, bridges, airports, dams, dams and tunnels, as well as improving the electrical grid, improving infrastructure for transportation, water supply, and wastewater treatment.
Mulvany also said that the US would “work with other nations to make sure we have a sustainable infrastructure system.”
Mullaney said the plan will help ensure that the country does not need to borrow money to build new roads or to pay off existing debt.
(Photo: Getty Images) Municipal bonds will be a key component of any infrastructure plan, MulVaney said, adding that the federal government is committed to making sure the debt-financed infrastructure is not a “disincentive to investment.”
In May, Mulvoy told CNN that the infrastructure plans would create 10.6 million jobs over 10 to 15 years.
So far, Mulvyan has not made any commitments to paying for infrastructure, but he has also not stated that the debt would be paid.
President Donald Trump has repeatedly criticized President Biden for his lack of infrastructure investments.
During his presidential campaign, Trump said he was going to spend $1 trillion to build roads, railways, and bridges.
Trump has also said he wants to build a massive wall along the Mexican border, a move that has sparked widespread protests and is now under investigation by federal authorities.
When asked about the debt issue during a visit to the United Kingdom, Biden said that he was not interested in building the infrastructure.
Speaking to the BBC in May, Biden claimed that there was no debt to pay in his budget.
“[I’m] not going to make the $200 trillion infrastructure investment that I promised.
I promise you that I’m going to get the money out of this country, we’re going to put money in the pockets of people that can’t afford it.
We’re going in the right direction,” Biden said.”
We are going to be able to do it and that’s going to give us a much better chance at making sure we’re not going into another crisis like we did in 2008 and 2009.”
Trump and Biden’s rhetoric has focused on infrastructure as a way to boost the economy and create jobs.
In March, Trump told reporters that he would invest $400 billion into infrastructure.
The following month, the president tweeted that he has “great confidence” in the plan.