Well, the US Senate “Bipartisan” infrastructure bill will likely pass very shortly. And it is EXPENSIVE ($1 trillion +), sort of like the twin asteroids in the film “Deep Impact” where the larger meteor, the $3.5 trillion budget resolution coming right behind the smaller meteor.
Here is the 2,702 page infrastructure bill. Yes, 2,702 pages of pork-barrel spending with zero economic impact.
According to the Penn Wharton Budget Model, there is no economic impact to the Senate’s infrastructure bill, but there will be an increase in Federal debt of 1.3% by 2031.
To be sure, repairing roads and bridges is an ongoing Federal expenditure, but why isn’t there more spending on protection against EMP (electromagnetic pulse) that could fry our electrical grid and send our economy back to the stone age? Frankly, I would rather see spending on protecting our electrical grid that spend $66 billion on Amtrak or the $16 billion on electric buses, etc.
The first of these two asteroids will result in a massive increase in Federal debt with no corresponding increase in GDP. Thus, M2 Money Velocity (GDP/M2 Money Stock) will sink even further.
Here is a photo of the twin asteroids (spending bills) that are approaching the US economy. And video!
Where does it end?