Biden is paving the ground for consensus on the infrastructure plan
Biden said at the start of the meeting: “I am ready to compromise and ready to see what we can do and where we can meet.” “I have realized that everyone is in favor of the infrastructure. The question is who will pay for it.”
Where will the resources come from?
The United States has several alternatives to Get the money Thus pushing economic aid packages, one of them through tax revenues, that is, tax increases, or through jobs that will be created with the infrastructure plan, which will lead to spending and consumption. You can also contract debt.
In addition, it has important reserves, deposited in the Federal Reserve (Federal Reserve), which will be used to finance spending, recalls Carlos Serrano, chief economist at BBVA Mexico.
In the case of taking the path of depositing debt, the United States is the first country in the world in economic terms. what does that mean? “It’s a country that has the capacity to pay its debts,” said Agustin Pendrive Decilos, a researcher at La Salle University’s Business School.
Their rates are a reference for risk free rates. Therefore, a lot of people believe that the US government can issue debt almost infinitely, and that there will always be people who want to buy this debt and finance the US because it is a risk-free economy, ”added Roldan.
In a videoconference last week, Carlos Serrano said that having a benchmark rate at levels close to zero (between 0% and 0.25%) would prefer that contracted debt had no inflationary effects.
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