Question about the infrastructure spending proposal

[Ohioboy]

I'm no financial expert, but isn't the type of spending proposed money that will go directly to the people of the United States? In other words, it's designed to go directly into the economy, right?

As I said, I'm no expert, but it seems to me that unless somebody grabs it all and takes it out of circulation, it will serve to boost the economy.

[FBaggins]

1. Not "directly" no.

But in theory - it largely still counts as "boost the economy". It's just that the spending isn't immediate.

You may remember when they promised a previous bill would go to "shovel-ready jobs"? Some of those dollars still took years to hit the economy.

[Ohioboy]

2. I understand that it is not all spent at once, that it is over years

But it goes into circulation, better than things like tax cuts, right?

[underpants]

3. A financial truism (I guess) is that any new dollar into a system rolls over at least 6 times

From contracts being awarded and the resulting subcontracting and buying/lease of equipment to grants to easing of family expenses like daycare.

Everyone along the line eats lunch, buys groceries, goes out to dinner, maybe buys houses and cars. Every single transaction includes sales taxes to states and localities too.