Biden’s big plans for America

President Joe Biden’s infrastructure program is revealingly dubbed “The US Jobs Plan.” Jobs are always winners, while infrastructure quickly gets boring and the numbers rarely speak volumes. For example, what does it really mean that the U.S. investment rate is only half [1] of that of Europe? And a declining investment rate [2], as our “chart of the week” shows, doesn’t it almost make sense for an industrialized country?

The stories are more convincing than the numbers. For example, a train trip to Japan or Switzerland can quickly become an educational experience. Or the memory of a dam failure in New Orleans and major power outages in New York or, more recently, in Texas. And in general, schools and hospitals, broadband communication network and water supply need to be improved. These are disabilities that many Americans experience on a daily basis.

Biden discusses some of these failures in his presentation of the infrastructure program [3] and, almost at times deplores the state of the nation. But he seems to know that infrastructure projects often don’t generate much short-term political success. [4], although the country may benefit from it for decades, as it did after the major infrastructure programs of the 1950s and 1960s. Perhaps this is why it goes even further and involves China. : “The US Jobs Plan is an investment for America that will create millions of quality jobs, rebuild our country’s infrastructure and empower the United States to compete with China. “

By mentioning China so prominently, several objectives could be achieved: First, the reference to a country with a noticeably high rate of infrastructure investment illustrates how investment can sustainably increase a country’s potential growth. and can do it in a meaningful way. [5] Second, China’s success could also serve to allay some electorate fears about more government intervention. Third, the mention of the “strategic adversary” of the United States could help rally some Republicans and encourage his own party to close ranks. Finally, it could also underline the competitive urgency of the program. After all, one of the problems with these big projects is that they tend to cause divisions in Congress because of the many conflicting goals they generate within the two parties. We believe Biden’s goal will be to avoid being ambushed and to get the agenda through Congress as quickly as possible.

The road may nevertheless be strewn with pitfalls and require many compromises. But Biden has several arguments in his favor right now. First, citizens are likely to welcome the President’s injection of optimism after more than a year of pandemic gloom. Second, relatively little attention is currently being paid to increasing debt. Third, the need for infrastructure investment is obvious. And unlike what happened in 2009/10, enough projects are likely to be ready to go. The fact that the package of measures focuses on environmental sustainability can also be an added advantage.

We believe this should not only appeal to the progressive wing of his party, but also suggest that the United States could take the lead on this issue. Therefore, we think most outside observers of America might wish America’s success – but perhaps not its strategic adversary (s).

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