Proof is in the Pudding: Infrastructure Bill Boosts the Economy
The Infrastructure Bill has been a hotly debated topic, with politicians and citizens weighing in on the potential impact of such a large-scale investment. However, recent reports indicate that the bill is already positively impacting the US economy.
One of the most significant outcomes of the bill has been the increased investment in infrastructure and nonresidential structures. This investment comes from the government and private businesses that have been spurred to invest in new projects by the incentives contained in the IRA and IIJA.
This investment is having a significant impact on businesses and communities across the country. For example, electric vehicle and green energy projects are seeing a surge in funding and support. These projects promote a more sustainable future, create jobs, and stimulate economic growth.
The federal government has announced some $299 billion and has spurred another $503 billion in business investment that is providing a surprisingly quick and robust boost to the U.S. economy. Abha Bhattarai - The Washington Post
This impact can already be seen in the U.S. economic growth forecast. Economists at Morgan Stanley have raised their expectations for U.S. real gross domestic product (GDP) growth in 2023 from an earlier forecast of a 0.6% rise to a 1.3% increase. This growth is attributed to the increased investment in non-residential structures, which is expected to grow by 12.9% by the fourth quarter, and state and local investments, which are expected to grow by 4%.
The impact of the bill on private investment is also notable. Business spending on infrastructure rose 56% in the most recent quarter, accounting for 15% of the economy. This increase is due to the incentives contained in the IRA and IIJA, which have led to faster and stronger private-sector investment.
Overall, the infrastructure bill is positively impacting the economy, with the federal government announcing some $299 billion in funding and spurring another $503 billion in business investment. The bill is expected to translate to roughly $3.5 trillion in funding over the next decade, including some $1 trillion from private businesses.
While it is still early days for the bill, these positive outcomes suggest that the investment will continue to benefit the economy in the long run. The bill drives sustainable growth, creates jobs, and stimulates economic activity. As we progress, it will be interesting to see how these changes continue to play out and what further benefits we can expect from this investment.
I originally wanted to write a blog post giving specific updates about new projects, but there are too many and too much info to even know where to start. Instead, I'll direct you here: whitehouse.gov/build/maps-of-progress/ for an extensive list of infrastructure projects that have been approved and their details. Don't worry about your signage needs--we've got you covered!