The Winners and Losers of the American Jobs PlanLearn more about this firm
Infrastructure is the backbone of any healthy economy, and America’s is in desperate need of refurbishment and investment. Indeed, President Biden campaigned on a promise to revitalize our aging infrastructure and to invest heavily in clean energy. Biden recently took the first step in that direction by introducing the $2.3 trillion American Jobs Plan. Let’s talk about this plan’s winners and losers, as well as what it could mean for your investment portfolio.
What’s the Plan?
All of the fiscal stimulus pumped into the economy in the past year has been aimed at helping businesses and individuals manage the economic impact of the COVID crisis. As such, these measures have been relatively short lived. But the infrastructure plan is expected to have a much longer shelf life. Spending will occur over the next eight years, and its economic impact is expected to last much longer. In fact, in 2021 alone, infrastructure spending—along with the easy monetary policy and rebound in post-COVID spending—is expected to push GDP growth to more than 6 percent.
According to the White House fact sheet on the American Jobs Plan, there are a few primary goals of this infrastructure investment:
- Fix highways, rebuild bridges, and upgrade ports, airports, and transit systems (cost: $447 billion)
- Deliver clean drinking water, a renewed electric grid, and high-speed broadband to all Americans (cost: $311 billion)
- Build, preserve, and retrofit more than 2 million homes and commercial buildings, modernize our nation’s schools and child care facilities, and upgrade veterans’ hospitals and federal buildings (cost: $378 billion)
- Solidify the infrastructure of our care economy by creating jobs and raising wages and benefits for essential home care workers (cost: $400 billion)
- Revitalize manufacturing, secure U.S. supply chains, invest in research and development (R&D), and train Americans for the jobs of the future (cost: $580 billion)
- Create good jobs by electrifying vehicles (cost: $174 billion)
But who are the expected beneficiaries of this infrastructure plan, and are there companies and industries that will be negatively affected? Here’s what investors need to keep in mind.