Question
Please help with this question: Legislators in the United States are currently debating a proposal for spending approximately $1.2 trillion on infrastructure.Among other things, the
Please help with this question:
Legislators in the United States are currently debating a proposal for spending approximately $1.2 trillion on infrastructure.Among other things, the plan includes $550 billion of new government spending on building and repairing roads, bridges, public transit, and passenger rail, and on improving access to clean drinking water, high-speed internet and clean energy.Assume that the government will mostly implement this policy by increasing its budget deficit in the short run.
1. Explain what would happen in the short run, and in the long run if the proposal is passed?Who will likely benefit from this policy? The policy can be assessed in a number of different ways:long run versusshortrun;affectonprivateinvestment;affectonGDPand growth;affectonfiscaldeficits,etc. Use only explanation of models and not calculations.
2. Take a clear position on this proposal: Is the policy a good idea?If yes, what goals does it help meet?(e.g. Does it help the US economy in the short run, in the long run?What are the policy's effects on the government budget balance?) If you disagree with the policy, why?If you think the policy will be ineffective, can you think of a better way to implement it?
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