Analytics at Wharton
Biden’s Infrastructure Plan: Who Are the Winners and Losers?
The American Jobs Plan (AJP) proposed by President Biden on March 31 would spend $2.7 trillion and raise $2.1 trillion dollars over the 10-year budget window of 2022–2031, according to the Penn Wharton Budget Model (PWBM), a nonpartisan initiative that analyzes the economic impact of public policy proposals.
The AJP’s tax and spending provisions would increase government debt by 1.7% and reduce GDP by a quarter percentage point by 2031, the study projected. By 2050, however, government debt would fall by 6.4% and GDP would decrease by 0.8%, according to its estimates.
“The decline in GDP isn’t necessarily going to mean that we are worse off as a society,” Alex Arnon, associate director of policy analysis at PWBM, said in an interview on the Wharton Business Daily radio show on SiriusXM. Much of the spending is to keep existing infrastructure in running condition and to provide insurance against unforeseen setbacks, he added.