Joe Biden’s infrastructure modernization project is more than just a project to build and renovate roads, bridges or airports. This is the real plan to modernize the United States to face China. The modernization of infrastructure has been delayed for decades. Despite the dishonest campaigns by Republicans, the plan has a good chance of being passed in Congress. If approved, the plan will have significant implications not only for the future of the United States but also for Quebec and Canada.
What’s in Biden’s plan?
The plan actually includes three projects within a single budget envelope of more than tr 2 trillion. The first project, which will cost $ 1.3 trillion, will cover 10,000 bridges and 30,000 km. , Schools and low rental housing. The second plan, $ 580 billion, will go to strengthening national supply chains, stabilizing industries, and in research, such as green energy. It is more of an industrial policy than an infrastructure project. The third project, valued at $ 400 billion, aims to expand access to care for the elderly or the disabled.
What are the arguments of the opponents of the plan?
Opponents of the plan accuse it of funding itself by raising taxes on companies whose tax rate will fall from 21% to 28%, which would destroy the US economy. Fox News argues (falsely) that only 5% of the project’s investment will go to infrastructure. Others, more precisely, point out that caring for the elderly is not part of an infrastructure.
Why this plan is important in the struggle between the United States And China?
Most of the infrastructure in the United States was in the 1950s, while China’s infrastructure was the most recent. If the United States is involved in the Cold War against China, it must have better infrastructure. Moreover, poverty and the resulting social divisions present a very negative image of the United States and have in addition become real internal enemies.
Why is the project likely to be completed?
There are several elements to this plan, which will attract moderate Democrats further to the left. So you don’t really have to wait for a section in Pitan’s camp. Since the latter has a majority in both chambers, except for one turn, the plan must get a majority of votes.
What are the implications of this plan for Quebec and Canada?
The plan is expected to cause strong economic activity in the United States in the coming years. However, this plan is inflationary. It offers to increase the wages of workers who help the elderly. This will increase the cost of goods. It also carries the risk of causing a specific labor shortage. In addition, high-tax companies send a portion of the bill to consumers. The economies of Quebec and Canada, as usual, should benefit from solid economic activity in the United States. However, this plan will add more inflationary pressure to our economies.