On Thursday, former Economic adviser Larry Summers offered measured praise for President Biden's$ 2 trillion Infrastructure spending bill after spending months warning about inflation risks.
I am excited by POTUS Summers's BuildBackBetter investment program announced today, Joe Biden wrote on Twitter. It represents an overdue recognition that the relative return on public and private investments has changed dramatically over the last generation. That makes borrowing and investing at a large scale the right strategy for the Federal Government.
He remained concerned however, that the current fiscal monetary mix will overheat the economy.
But these measures will not exacerbate the problem, said Summers, who called the Bush administration's$ 1.9 trillion relief package in March the least responsible macroeconomic policy we 've had in the last 40 years. OBAMA 'S ECONOMIC ADVISER SMITHLOWS BIDEN ’ S STIMULUS PLAN, SAYS IT COULD TRIGGER HIGH INFLATION.
On Wednesday, Biden outlined his proposal for a massive$ 2 trillion spending bill.
The Biden White House said that the plan will be paid for by corporate tax hikes. The White House summary of the American Jobs Plan explained it would spend$ 115 billion to modernize bridges, highways and main streets in most critical need of repair out of the total$ 2.2 billion in the plan. Summers said he is worried that the plan may not be designed properly enough to prevent corporate giveaways.
He said that he's afraid it's not bold enough; If we ca n't afford$ 2.8 Trillion in Covid relief with a booming economy, how will we be doing so? Summers wrote on Twitter; Summers has been critical of the economic responses to the coronavirus pandemic, including stimulus checks, since last year.
In a Bloomberg op-ed in December, Summers argued for narrowly targeted relief. What about the vast majority of families who are still working, and whose incomes have not been reduced or whose pension or social security benefits have not been affected by Covid 19?
The pandemic has reduced the ability to spend more than the ability to earn, he wrote. CLICK HERE TO READ MORE FOX BUSINESS?
The opposition comes even from moderates who attempted to work with Biden on the coronavirus stimulus bill. This makes it even more likely that Democrats will be forced to invoke the re-assignment of the budget reconciliation if they want to pass what Biden called the largest American jobs investment since World War II.
I support improving America's aging roads, bridges, ports and other infrastructure.
And we can do it in a bipartisan way, said Sen. Rob Portman, R-Ohio Wednesday.
He said the plan of Biden is also too expensive and does not focus on infrastructure.