Will This Include Infrastructure Improvements?
In addition to the president’s investments in the private sector, the plan would support more funding for public infrastructure. During his South Carolina speech, he mentioned funds for roads, bridges, and broadband internet expansion.
A White House statement said that more infrastructure funding supports economic growth and that the use of American-made products boosts manufacturing.
“This infrastructure is the necessary foundation for durable and shared economic growth,” the statement read. “Thanks to the Bipartisan Infrastructure Law, 35,000 new projects have been awarded funding in communities all across the country.”
How Will This Plan Affect Inflation?
Biden said during his South Carolina speech that his administration has been working to reduce inflation but did not elaborate on what aspects of “Bidenomics” would bring down inflation. Inflation rates have been slowing down, but lower inflation rates do not mean the value of the dollar will increase. Rather, it simply means the value of the dollar is decreasing at a slower rate than before.
Griffith said the proper way to reduce inflation is to “get the federal spending … under control now.” Without spending cuts, he said, the only way to pay for these programs is to “unleash the printing presses of the [Federal Reserve],” which will cause more inflation, or increase taxes, which will have other economic consequences.
Inflation has caused increased housing costs, which has made it “nearly impossible to buy a home,” Griffith said. He added that inflation rates, compounded with higher regulations, have increased costs for a variety of other goods, including cars and appliances. He said the regulations are also “deterring investors” in agriculture, technology, and other industries.
“Nearly all American families are experiencing the effects of Bidenomics now,” Griffith said.
New said “the high inflation rates that have taken place during the Biden administration have hit families hard” and noted hikes in gasoline costs and groceries negatively affecting family budgets. He recommended a different approach than “Bidenomics.”
“Economic history tells us that a better economic strategy for families is to reduce the number of regulations and institute broad income tax rate reductions,” New said. “Such policies improve economic growth and improve the economic conditions for families.”
>> First published in the National Catholic Register