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For expansionists: a better infrastructure plan

I argued in my previous post against claims that the US economy faces tight limits to noninflationary growth–limits that would be passed in the event policymakers tried to increase GDP growth over a period of years. At this link, the Roosevelt Institute offers an example of the kind of fiscal policy action that Congress could take to try to achieve increased rates of economic growth without spurring inflation. The article’s focus is a stimulus plan from Senate Democrats, which of course differs greatly from the likely Trump infrastructure plan. As the Roosevelt Institute piece points out, the latter is much worse. It would subsidize private investors and focus on only a few kinds of infrastructure, to the exclusion of “green” innovation, broadband connectivity, and other equally needed investments. At least in principle, the Senate Democrats’ infrastructure plan could be described as more in line with a truly populist policy agenda.

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