The $1.2 trillion “infrastructure deal” is a progressive-sounding label on old-fashioned pork. It will not grow the economy; it will not be “fully paid for,” as promised; and it will not even focus on the “roads and bridges” that are always being cited as the reason for the spending.
Though the media tell us that it will be a “huge political victory” for President Joe Biden, and a boon for Democrat-aligned interest groups, it is not clear what this bill does for the country.
Start with the economic news.
A major purpose of government investment in infrastructure is to provide the means for the private sector to generate economic activity. Public roads let firms move goods to market; aqueducts provide water to farms; trains help people get to work. Infrastructure projects also create direct and indirect jobs.
An infrastructure plan that fails to generate economic growth is worse than useless, a waste of public money that could be better spent.