GDP

Another big legislative win crossed the line for Biden’s agenda late this Friday night: the $1.2T bipartisan infrastructure bill passed the House with 6 Democrats dissenting and a whopping 13 Republicans joining to finally bring Infrastructure Week to the American people. Still to come is the other partner to the twin bills circulating in Congress, the Build Back Better reconciliation bill that would add another $2T to the most Keynesian U.S. budget in decades.

Nevertheless, the bill is largely paid for via various means including adding significantly to economic growth and GDP over the next 10 years. The Biden infrastructure bill will not raise taxes on any families making less than $400,000, a campaign promise the president consistently made and has now delivered upon.

The bipartisan infrastructure bill is the second significant piece of legislation passed under Biden’s tenure in the White House, following the $1.9T American Rescue Plan back in March to successfully tame the covid-19 pandemic.

Infrastructure Bill 2021: Breakdown

What’s in the bill? A slate of sorely needed national funds to modernize our transportation, energy, and broadband systems, including provisions for increasing renewables and lowering emissions on a large scale to combat climate change. Here’s a list of what’s included in the largest single infrastructure investment in American history:

  • $110B for roads, bridges, & other infrastructure
  • $11B for transportation safety
  • $39B to modernize public transit, including replacing 1000s of vehicles with zero-emission models
  • $66B to modernize passenger and freight rail
  • $12B for high-speed rail
  • largest federal investment in public transit in history
  • $65B in broadband
  • $42B in airports and ports, including emissions reduction and low-carbon technologies
  • $7.5B for 0- and low-emissions buses (including school buses) and ferries
  • $7.5B for national network of EV chargers
  • $65B to rebuild the electric grid
  • $55B to upgrade water infrastructure
  • $50B to critical infrastructure cybersecurity
  • $21B to clean up toxic waste
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The state has an interest in educating its citizens. There are a number of reasons a nation could benefit from attending to the education of its citizens, creating a state interest in public education. Many of them are economic, and contribute to the growth of industry and health of communities:

  • More people generating more value increases GDP, compounded over time
  • Increased entrepreneurship
  • Increased innovation, and dynamism in the economy along with it
  • Improved public health and saving cost on health care
  • Longer life spans means more working years at greater seniority levels, contributing a lot of surplus value to the economy
  • Increased incomes provide more free time to contribute to civic life and be informed voters
  • Decreasing the number of “Lost Einsteins” — talented individuals who do not get a chance to shine their lights and contribute their gifts

We all have an interest in investing in the development of our human capital, because it is rational to do so. It will pay many dividends over time, both directly and indirectly.

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