The US economy is in dire need of help. US President Joe Biden and the Democrats will push for a $3 trillion infrastructure bill. Let’s take a look at what this could mean not only for the American economy.
Why it matters
The US economy, like every other economy in the world, suffered huge damaging blows during the pandemic. This terrible situation has taken away employment, money and other vital things from people’s lives. The stimulus would help many people to find a new job and find a new, fresh start. People hope that it will kickstart the American economy, however there is a catch.
What you can hear
Government incentives are helping to build the groundwork for economic recovery and pave the way for a return to a normal life again. Investing in infrastructure is no exception. S&P predicts that the plan will help create 2.3 million jobs. It will also bring $5.7 trillion to the economy, ten times more than what was lost during the recession, and also increase per capita income to $2,400. All this should happen by the year 2024. On the other hand, this money will be created out of thin air and it could further increase the prices of everything, thus increasing inflation.
What it could mean
Creating new jobs is definitely needed. Many people lost their jobs during the pandemic and recession which has caused a huge shortage in the market. Should the incentive work as planned, it will help to ease the situation in a short term, but in the long term it could present a problem once this extreme debt is due for payment. And that also includes other countries as well because all central banks are now trying to help their economies with incentive packages unheard of as to their amount a year ago.
What you can do
At this time, it is important that you protect your finances and also take measures that will help you protect it in the future. One possible way how to that is investment. Investing can be risky, but with sufficient knowledge it can help you boost your income while having passive income from your money. If you would like to start investing but not sure where, you can use our Platon Trading Academy, which will take you through the world of investment and digital currencies.