Reduces $ 1,200 billion, it was adopted Friday night by the House of Representatives. But its other flagship plan, mixing social and environmental measures, is repulsed.
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In early November 2020, suddenly, Wall Street flies away. It is not so much the election of the new President Joe Biden that the American Stock Exchange greets, as she had done four years earlier with Donald Trump, but the discovery of Vaccines against Cvid-19. Thus, the United States will be able to get out of the economic and healthy hole in which they fell nine months earlier. Everything is not settled, a second murderous wave that the first will happen in January 2021, but the exit of crisis is in sight.
One year later, Wall Street flies again: the employment figures published on Friday, November 5 are reassuring, with an unemployment rate from 4.6%, while Joe Biden managed to make definitively adopt definitively By the House of Representatives the Infrastructure Plan, voted this summer in the Senate by 50 Democrats and 19 Republicans. Reduced to $ 1,200 billion (€ 1,040 billion), this project that Mr. Trump had not been able to carry out well, includes only 580 billion new financing. It was emptied from most of its climate component and its financial consideration, the increase in corporate taxes and the highest incomes, a condition sine qua non of a republican vote.
This plan is a mix of measures considered indispensable: 110 billion for the repair of roads and bridges, 66 for railways, 40 for public transport. Sixty-five billion dollars will be devoted to broadband access, with a help of $ 30 per month to low-income households to pay the Internet service. The electricity grid will receive $ 65 billion, while 50 billion will be used to make infrastructure more resistant to cyberattacks and natural and climate disasters.
A double strategy
When he arrives at the White House in January 2021, Joe Biden wants to push his advantage to transform the economy. It was all the more possible that he had, at the beginning of the month, a divine surprise with the victory of two Democrats in the Senate elections of Georgia, which allow him to control the Senate.
The new US president immediately satisfies his foreign allies by returning to the Paris Climate Agreement while voting a massive economy support plan, $ 1,900 billion (8.5% of GDP ), which restores federal unemployment benefits and send a tax check to US households. Some voices make their reluctance on this initiative deemed upright, while the economy already bounces, such as the former Treasury Secretary, Larry Summers. It worries about inflationary tensions, the story showing that the central bank has, in this case, the greatest evil to pilot a smooth landing of the economy: risk a recession while the economy is skyrocketing?
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