Biden: Infrastructure bill will ease economy woes, just wait

[Omaha Steve]

Source: AP

By JOSH BOAK and COLLEEN LONG

BALTIMORE (AP) — President Joe Biden touted his $1 trillion infrastructure plan Wednesday as an eventual fix for the nation’s inflation and supply chain woes — if Americans just have the patience to wait for the construction to begin.

The president toured the Port of Baltimore at the start of what is likely to be a national tour to showcase his signature legislation that cleared Congress last week and that he intends to sign on Monday. He declared that the spending would improve transportation of products and supplies from overseas and within the U.S. to help lower prices, reduce shortages and add union jobs.

That message is becoming more critical as the government reported Wednesday that consumer prices in October climbed 6.2% from a year ago. Inflation has intensified instead of fading as the economy reopened after the coronavirus pandemic, creating a major challenge for Biden whose administration repeatedly said that the price increases were temporary. During remarks at the port, he acknowledged that consumer prices remained “too high.”

“Everything from a gallon of gas to a loaf of bread costs more,” he said. “We still face challenges and we have to tackle them ... we have to tackle them head on.”



President Joe Biden talks on the phone after speaking during a visit at the Port of Baltimore, Wednesday, Nov. 10, 2021. (AP Photo/Susan Walsh)


Read more: https://apnews.com/article/joe-biden-donald-trump-business-baltimore-9ad8d338e51238591c11517f64845681

[berni_mccoy]

1. I wish he would not make statements like that.

The economy is at the brink of a major crisis and what happens next is highly unpredictable. The benefit to the economy of the BIF won’t be measurable for months. And it’s not clear it is enough to mitigate a recession.

[Johnny2X2X]

6. Holy smokes

The economy is growing at its fastest rate in decades, job growth this year is the best on record, and all the major stock indexes are at or near record highs. Recession? Virtually no economists are predicting a 2022 recession, but that growth will slow from the current record pace. Goldman Sachs predicts 4% growth in 2022, which would be one of the best years in decades.

Wage growth is breaking records too.

Sure, there's supply chain and energy problems causing some real inflation, but it's far from runaway inflation and not a threat to economic growth.

[berni_mccoy]

7. The economy has massive problems with it

The market is overinflated, the dollar has been massively diluted, supply chain and job issues related to non-livable wages (hello minimum wage?!?) and more consumer and corporate debt relative to GDP and actual liquid assets than anytime in history… a major correction is coming and it will likely be a recession right during the 2022 election cycle. There are plenty of economists predicting this.

[TomCADem]

10. Your Statements Are Contraditory...

...the inflationary pressures are due to the fact that there is too much demand for both workers and products. There is still a lot of pent up demand.

Now, lets say you are right, and suddenly the supply pressures ease and suddenly there is a flood of goods on the market. What happens?

Then prices go down as retailers try to get rid of all the goods coming. So, you have deflation.

This is my main concern living in California and seeing all the cargo ships still backed up. Eventually, the backlog will ease, and word is that it is starting to ease. However, what happens when we suddenly can meet and exceed demand?

Presumably, people will start buying more. For example, perhaps I can finally get a mountain bike or a GPU.

[Skittles]

12. house prices are absolutely ridiculous

I hear you

[bucolic_frolic]

2. Stimulus, asset bubbles and wage increases

Why were economists so silent all along? Because they're all invested in gold and crypto? Amazing how they all forgot the 1970s.

[larwdem]

3. patience

patience is a virgin, no wait! virtue

[Ray Bruns]

4. if Americans just have the patience to wait for the construction to begin.

Americans have the attention span of a gnat and the patience of a two year old.

[Alexander Of Assyria]

5. Patience...that is APs word Biden never used, or is anything like that referred to in

the article other than the headline and first paragraph opinion.

AP is not just a news aggregator, it is an opinionater disguised as an aggregator.

[Scrivener7]

8. Presumably there is some idea where this money is to be spent. There should be a messaging

effort that goes directly to the labor unions and labor organizations and unemployment offices and Chambers of Commerce in those places to say projects are planned in their backyards. Social media, organization meetings, email campaigns to all residents in the zip codes, billboards, posts in "My Neighborhood" type sites, a few friendly trolls to seed Facebook and twitter with excited posts about the prosperity coming their way.

This should be handled by a great PR firm that knows how to shape a message to its audience.

[jonstl08]

9. Will take some time

Historically it takes at least a year for the economic effects of the infrastructure bill or any tax bill to have a positive impact on the economy.

[andym]

11. "Biden Economic Miracle"

Coming right up in late Spring of 2022. Remember to repeat it widely when inflation drops. In reality, the economy is healthy and growing right now at a good clip, but the supply issues have increased inflation which is making people think the economy is not doing well. When inflation and oil/gas/food prices drop then Biden should get the credit, by virtue of being President. It will be like Ronnie's economic miracle, which was largely due to Paul Volcker, the Fed chairman originally appointed by Jimmy Carter, who broke the back of stagflation. However, Joe Biden will get the credit just like Ronnie did and at the same time he will have increased the social safety net and restored the infrastructure of the USA.