07/01/2021

Wharton Study Finds Biden’s Infrastructure Plan Would Cut U.S. Debt

It also would slightly increase economic growth

A bipartisan infrastructure deal reached by President Joe Biden and a group of senators would not only add to economic growth, but also lower the national debt, according to a new study from the University of Pennsylvania’s Wharton School.

Researchers at the Wharton School said the additional $579 billion in new infrastructure spending would increase domestic output by 0.1 percent and decrease the U.S. debt by 0.9 percent by 2050.

"Over time, as the new spending declines, IRS enforcement continues, and revenue grows from higher output, the government debt declines relative to baseline by 0.4 percent and 0.9 percent in 2040 and 2050 respectively," the Wharton team wrote.

Please select this link to read the complete article from CNBC.