Sloppy Joe is an idiot......
https://fee.org/articles/biden-infr...ways-over-long-run-ivy-league-analysis-finds/
By 2031, Wharton projects that the size of the economy’s total output will have shrunk by 0.9 percent as a result of the “jobs plan.” The analysts also predict a 3 percent decrease in the “capital stock,” a measure of the nation’s productive resources such as machinery, buildings, etc.
Why will the massive government spending reduce the capital stock? Because the proposal is financed by raising corporate taxes, which directly reduces private sector investment, and because it involves incurring massive amounts of government debt, which “crowds out” private sector investment.
https://fee.org/articles/biden-infr...ways-over-long-run-ivy-league-analysis-finds/
New Analysis Pours Cold Water on Biden Plan
Analysts at the Wharton Business School at the University of Pennsylvania weighed the potential benefits the proposed spending would have against the costs incurred by higher government debt and higher business tax rates. They find that while sending piles of cash flying out the door might seem stimulative at first, the long-term effects would all be net negative.By 2031, Wharton projects that the size of the economy’s total output will have shrunk by 0.9 percent as a result of the “jobs plan.” The analysts also predict a 3 percent decrease in the “capital stock,” a measure of the nation’s productive resources such as machinery, buildings, etc.
Why will the massive government spending reduce the capital stock? Because the proposal is financed by raising corporate taxes, which directly reduces private sector investment, and because it involves incurring massive amounts of government debt, which “crowds out” private sector investment.
