July 27, 2021
Economy

Biden’s Spending Plans Would Boost Economy, Not Spark Inflation: Moody’s

Democrats’ plan to spend more than $4 trillion over a period of years on everything from road repair to child care would boost the U.S. economy in the long run without sparking higher inflation, according to a new analysis from Moody’s Analytics.

Roughly tracking President Biden’s Build Back Better agenda, the $579 billion infrastructure bill currently under negation in the Senate, and the $3.5 trillion reconciliation package Democrats hope to pass alongside it, would increase GDP growth while benefiting lower- and middle-income workers most, Moody’s chief economist Mark Zandi and assistant director Bernard Yaros Jr. say.

The plan also seeks to avoid significant deficit spending. “The legislation is more-or-less paid for on a dynamic basis through higher taxes on multinational corporations and the well-to-do and a range of other pay-fors,” the analysts write, adding that…

Read full article here: finance.yahoo.com