Stimulus may be inflationary
Congressman Kurt Schrader (D-OR), along with eight other Democrat Congressional Representatives, has released the following statement to reiterate his position and call for an immediate vote on the Senate-passed Bipartisan Infrastructure bill:
“The Senate overwhelmingly voted to invest $1 trillion to modernize our nation’s aging infrastructure for the 21st century and the House must also deliver for the American people,†Rep. Schrader said. “The ambiguity of the reconciliation process would leave the bipartisan infrastructure package in limbo and lead to possible failure. Families in Oregon and throughout the country simply cannot afford to miss out on the largest effort in a century to rebuild our crumbling transportation and water systems and make transformative investments, like ensuring universal access to affordable high-speed broadband and strengthening energy resiliency.
“The House must pass the bipartisan infrastructure package without delay. Waiting any longer risks losing the creation of good-paying union jobs, growing and supporting businesses and keeping our country competitive in the world market.â€
A
white paper from the
National Bureau of Economic Research points out that -- at least with
actual infrastructure projects -- any short-term stimulus effect is offset by the short-term impact of re-allocation of construction resources, as well as negative impacts on traffic flow caused by construction. The report also emphasizes that the economy is generally trending favorably, as government policies on COVID-19 caused pent-up demand and government-induced stimulus may be inflationary.
--Staff Reports| Post Date: 2021-08-22 11:44:15 | Last Update: 2021-08-22 11:59:59 |
