Joe Biden’s infrastructure modernization plan is more than just a plan to build and renovate roads, bridges or airports. This is a real plan to modernize the United States to face China. Modernization of infrastructure has been overdue for decades. This plan has a very good chance of being passed in Congress, despite the dishonest propaganda of the Republicans. The plan, if adopted, will have significant consequences not only on the future of the United States, but also on that of Quebec and Canada.
What’s in Biden’s plan?
The plan actually contains three plans within a single budget envelope of over $ 2 trillion. The first plan, which would cost 1.3 trillion US dollars, is dedicated to the renovation and construction of 10,000 bridges, 30,000 km of roads, railways, public transport lines, ports and airports , high-speed energy and telecommunications networks, water and sewage systems, schools and low-rent housing, etc. The second plan, of 580 billion, would go to the strengthening of national supply chains, in promising industries, in research, in green energies, etc. It is more an industrial policy than an infrastructure plan. The third plan, worth 400 billion, aims to extend access to care to the elderly or disabled.
What are the arguments of the plan’s opponents?
Opponents of the plan accuse it of financing itself by raising taxes on companies, whose tax rate would drop from 21% to 28%, which, according to them, would destroy the American economy. Fox News argues (falsely) that only 5% of the plan’s investments will go to infrastructure. Others point out, more correctly, that care for the elderly is not part of an infrastructure.
Why is this plan important in the struggle between the United States and China?
Much of the infrastructure in the United States dates back to the 1950s, while that of China is quite recent. If the United States engages in a cold war against China, it will need to have the best infrastructure. Moreover, poverty and the social divisions that result from it have become real internal enemies, in addition to projecting an extremely negative image of the United States.
Why is the plan likely to pass?
The plan contains many elements that will appeal to moderate Democrats as much as those further to the left. So you don’t really have to wait for a division in Biden’s camp. As the latter has a majority in both chambers, barring a twist, the plan should receive a majority of votes.
What are the consequences of this plan for Quebec and Canada?
The plan is expected to result in strong economic activity in the United States in the coming years. However, this plan is inflationary. It provides for an increase in the wages of workers who help the elderly. It will drive up the costs of materials. It also risks causing a certain scarcity of labor. In addition, companies that will be taxed more will pass part of the bill to consumers. The economies of Quebec and Canada should, as usual, benefit from solid economic activity in the United States. However, this plan will add further inflationary pressure to our economies.