At the start of the year when President Biden was sworn into office, the US announced that it would be spending a lot more money. Biden proposed a 6 trillion-dollar budget, which would put the US at its highest spending level since World War II when they funneled money into defense spending. The proposed spending includes many pieces of Biden’s agenda such as the infrastructure plan and the American Families Plan, which looks to expand social safety. Along with that, 1.52 trillion dollars are going to discretionary spending such as education, fighting climate change, and medical research. This marks a major contrast from the idea of Reaganism as Biden believes that more government help will benefit the country, especially the middle class. In the budget, taxes on the wealthy and corporations will shrink deficits in the 2030s, but deficits will run high until then.
One of the biggest uses of this budget is $1.2 trillion bipartisan infrastructure bill Biden has planned. The plan is slowly but surely coming to reality as the specifics are being worked out and the first steps to get it passed have begun. Currently, because the bill is bipartisan in nature, it needs the support of at least 10 Republicans to garner the 60 votes required to advance under Senate rules. Now there seems to be some delay as Republicans who helped negotiate the bill feel it is not ready. Specifically, that the bill is lacking a complete text as well as cost estimates and how to pay for it. Some Democrats believe this is a delaying tactic, but Republicans have countered that if the vote takes place, they will vote “no” even if they support the broad idea. What do you think about the infrastructure plan? And will it be passed anytime soon?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.