When you think of a good time, an interesting debate, a real hot topic, infrastructure is what’s on your mind, right? We thought it might be, so let's break it down a bit.
Joe’s Bill, and the Bill for Joe’s Bill
Last Wednesday President Joe Biden unveiled a portion of his proposed infrastructure plan to help revitalize and progress America’s infrastructure going forward. The plan contains $2 trillion dollars of spending, and outlines budgets for numerous areas.
- About $600 billion would go toward transportation, including roadways, railroads, and bridges, all with a focus on cleaner energy. $174 Billion of the transportation portion would be put towards the adoption of electric vehicles, including stations, bus fleets, and government vehicles.
- The “quality of life at home” section allocates $650 billion to the constructing, revitalizing, and “retro-fitting” of more than 2 million affordable homes and commercial buildings. Some of it would go to modernizing schools, replacing outdated plumbing, cleaner drinking water, and a lot more.
- Another $400 billion would be injected into the elderly/disabled caregivers area, and $300 billion toward research, development, and manufacturing.
And there you go, a quick two trilly racks just like that. Ain’t nothin' to a government.
Where America stands now, globally speaking
The US consistently comes in around 13th globally as far as total aggregate infrastructure. This is hard for most of us to believe as we often have no affiliations with public transit while driving our own vehicles in the suburbs, but numbers don’t usually lie.
Some of the most noteworthy categories we’re suffering in are as follows: aviation, drinking water, energy, schools, transit, and... all the important things. We actually seem to be doing best in the areas of ports and rail.
So, what are the potential implications for us if this is all put into action?
Infrastructure projects are often the tortoise of all the government’s pet projects. They’re slow to start and slow to develop. If seen through, the investments into updating schools, clean water, and a new emphasis on ensuring public goods can be a difference-maker for a lot of people.
Biden pledged that his long-term economic agenda would not add further to the growing national debt, and that the increase in taxes on corporations from the current 21% to 28% over a 15 year period is enough to pay for eight years of spending on infrastructure.
Let's just hope there isn't a trickle-down impact on the broader population because of higher corporate taxes. And at least for now, Biden continues to echo the statement that taxes won’t be raised on anyone making less than $400,000 per year.
Assuming follow-through to move on these infrastructure projects, they could create the potential for new jobs, fueling optimism in the economy and ultimately the markets.
Where should you then look for investment opportunities? See what Finny's investment community has to say about just that: