US congressmen called the new infrastructure law the most effective social spending plan since the 1930s. Representatives of the US business groups also welcomed and believed the plan to bring long-term investments and create more jobs. Declaring victory after months of promoting an ambitious plan, President Biden pledged that the US government would have a responsibility to ensure that the budget is spent properly.
The above budget is intended for an unprecedented large-scale infrastructure development campaign, focusing on upgrading the system of bridges, roads, airports, etc., as well as improving broadband internet. In addition to the recently enacted infrastructure law, President Biden also announced a spending plan worth USD $1.75 trillion, in order to expand the social safety net and promote the US’ fight against climate change.
According to the US Department of Labor, the consumer price index (CPI) in October, covering a range of essential goods and services in the US, increased to the highest level in 30 years. Much of the inflation was driven by sharp price increases in sectors hit hard by the COVID-19 pandemic as well as supply shortages, especially in the energy and food sectors.
The Biden administration believes that a better plan to rebuild America can help reduce inflation, as investments in social security and workforce development have helped millions return to work. In September, the number of workers in the US changing their jobs reached a record high. This is an indicator that the job market is gradually recovering as workers have more opportunities to find jobs with higher wages.
In order to revive the economy, the US has also actively resolved disagreements with trading partners. At the online summit to be held November 16, US President Biden and Chinese President Xi Jinping are expected to discuss measures for responsible competition and cooperation in a number of relevant areas. The US also began negotiations with Japan on tariffs of steel and aluminum. Previously, the US and the European Union (EU) had reached an agreement to ease tariffs on steel and aluminum products.
A series of positive moves by the administration of President Joe Biden to promote domestic reforms and improve relations with partners, is expected by the public to create more impetus to revive the world's leading economy, contributing to the recovery of the global economy after a long time of struggling due to the pandemic.
