US$1.2 trillion infrastructure package expected to breathe new life into US economy

Sunday, 2021-11-07 15:49:21
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The United States Capitol in Washington, DC. (Photo: VNA)
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NDO – The US Congress has passed a US$1.2 trillion bipartisan infrastructure bill following much controversy. Analysts believe that this infrastructure package will create an important new impetus for the US economy in the medium and long term.

After sitting on the “hot seat” in the White House, President Joe Biden has made efforts in recent months to push forward with his ambitious spending plans.

In recent statements, President Biden has repeatedly emphasised that the United States needs a budget of US$1.2 trillion to repair degraded bridges, roads and railroads and a larger budget for childcare and other fields. This will be historic support for ordinary Americans in need, he said.

In addition, the President’s agenda also includes other important budget packages for climate change and social welfare. The US$1.75 trillion social spending package, the biggest since the 1960s, is still under discussion and is expected to be voted on by lawmakers November 30.

According to President Biden, the above spending packages will “breathe new life into the economy”. Along with creating motivation for new growth, Biden expects the huge spending plans to help improve competitiveness and maintain the position of the world's leading economy.

The US Congress approved the huge budget package for infrastructure development in the context that the economy is showing signs of lagging infrastructure and is lacking new drivers for growth in the medium and long term.

Meanwhile, in the short term, supply chain bottlenecks and labour shortages are hindering US economic growth. At the end of October, US President Joe Biden called on the Congress to approve large investments in infrastructure and social safety nets and improving the quality of human resources in the context that Democrats are deeply divided on these packages, mainly due to concerns about inflation and budget uncertainties. The US President warned that the above spending packages are urgent.

The above US$1.2 trillion infrastructure package, the largest spending package in US history, was approved by the Senate in August.

According to the schedule, the bill now heads to President Biden’s desk to be signed into law. This event not only creates momentum for the US economy but also helps the White House leader “score” with voters and Americans, because improvements to infrastructure and social security are the most important commitments from his election campaign.