U.S. President Joe Biden on Wednesday (March 31) announced a new stimulus package of $2.25 trillion, with a focus on investing heavily in infrastructure projects, and he claimed on Friday (2) that an independent analysis estimated that 19 million jobs would be created over the next 10 years, the first time the White House has estimated the impact of the plan on jobs, and Biden even said the jobs were ” very good, blue-collar and high-paying jobs.
Biden’s figure was originally based on a report published this week by Moody’s Analytics, which said that if the infrastructure plan is approved by Congress, it could add 18.9 million jobs over the next 10 years, but this seems to have been taken out of context, which may cause controversy.
According to the report, the U.S. natural job growth and the $1.9 trillion bailout passed earlier could add a total of 16.3 million jobs, which means that the infrastructure plan itself will only add an additional 2.6 million jobs over the next 10 years.
Moody’s analysis also expects that Biden’s plan may “slightly” reduce the growth rate of the economy next year, because businesses are first affected by tax increases, while the contribution of infrastructure spending and projects to the economy will only be seen later. However, the report still predicts that the infrastructure plan will bring growth to the economy and employment from 2023, and predicts that Biden’s first presidential term will add 13.5 million jobs overall, more than the 11.4 million without the infrastructure plan.
Some voices have criticized the increase in corporate taxes as a possible impediment to the economy or hiring.
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