110 days ago • Posted by Jasper Lawler

From this perspective, Biden infrastructure is not crazy spending but catchup

In the US, government investment actually collapsed in the aftermath of the GFC. This time, however, governments are in the driver’s seat of the recovery, with unprecedented amounts of fiscal stimulus.

This real economy boom likely means employment will be back at pre-crisis levels much faster than average, the recovery is much more commodity-intensive, and inflation will overshoot – at least in the short term. Also, relatively high growth numbers open the door to addressing inequality not only across households, but also between households (labor) and companies (earnings).

Source: @JSBlokland / Daily Sketch newsletter

From this perspective, Biden infrastructure is not bold spending but just catchup