Biden’s Soft Infrastructure Agenda May Not Boost Growth
Evidence of impact on economic output to support Democrats’ multitrillion-dollar proposal is contested
Biden has described this as “once-in-a-generation investment” in the economy.
Investment generally refers to spending that yields a stream of benefits years into the future, making the economy larger and more productive
Most agree that items funded by the bipartisan bill such as roads, bridges and airports—referred to as hard infrastructure—qualify as investment. But research is less supportive that things in the reconciliation bill such as free community college, expanded Medicare eligibility and benefits, and paid family leave—called soft infrastructure—would boost economic growth.