Biden's $2 Trillion Infrastructure Plan... Summers Praises as "Highly Desirable Direction"

Foreign Media: "The Most Ambitious Policy... Unprecedented Scale Not Seen in the Past Half Century"
High Likelihood of Republican Opposition... NYT: "Congressional Negotiation Process Is Key"

President Joe Biden of the United States [Photo by Reuters]

[Asia Economy Reporter Kim Suhwan] Larry Summers, who served as Treasury Secretary during the Bill Clinton administration, has showered praise on U.S. President Joe Biden's $2 trillion infrastructure investment plan. Unlike the COVID-19 stimulus packages, which mainly involved direct cash support, this development plan includes expanded investment in social infrastructure, leading to evaluations that it is a development plan capable of promoting qualitative growth in the U.S. economy.

Regarding the $2.25 trillion infrastructure development plan announced by President Biden on the 31st of last month (local time), former Secretary Summers expressed support, saying he is "very optimistic." In an interview with Bloomberg News that day, he said, "(This infrastructure development plan) is exactly the policy the U.S. needs right now," adding, "Especially, the focus on green energy and electric vehicles is the most satisfying aspect."

Summers: "Expecting to Promote Qualitative Growth"

Previously, Summers criticized the $1.9 trillion COVID-19 stimulus package proposed by President Biden and passed by Congress as an "irresponsible policy." The reason Summers gave a different evaluation for this infrastructure plan is that, unlike previous stimulus packages which could cause inflation through cash injections, this infrastructure development plan is expected to drive structural growth in the U.S. economy.

Former U.S. Treasury Secretary Larry Summers [Photo by Bloomberg]

Former Secretary Summers said, "This is exactly the kind of plan that constitutes investment for economic growth," and added, "I expect it will increase tax revenues while also alleviating the risk of economic overheating."

He particularly praised President Biden's emphasis on green policies, calling it a "very desirable direction." Regarding concerns that the tax increases included in this infrastructure development plan might lead to reduced investment and job losses, he rebutted, saying, "I do not think so," and "The argument that it will affect investment is not convincing."

Foreign Media: "Unprecedented Scale Infrastructure Development Plan... Biden Begins Shift to 'Big Government'"

Foreign media generally focus on the scale of this infrastructure development plan, describing it as "the most ambitious infrastructure plan." The New York Times (NYT) called it "a public finance investment plan of a scale unseen in the past half-century," and evaluated it as "a plan showing President Biden's determination to overcome America's structural social and economic problems."

The Washington Post (WP) also acknowledged that "some economists are concerned that the massive financial scale of this plan could cause economic overheating and fuel inflation," but emphasized, "What is important is that the U.S. is aiming for a big government and significantly strengthening investment in the public sector. This is a historic policy shift."

On the other hand, some environmentalists have voiced criticism that the green policies in this infrastructure development plan are insufficient. Bloomberg News reported, "There are criticisms that the incentive policies for companies engaging in carbon capture do not completely prevent carbon emissions," and "some demand stronger carbon emission removal policies."

Additionally, the infrastructure development plan, which includes tax increases, is expected to face strong opposition from the Republican Party, which advocates for tax cuts, making its passage through Congress difficult. The NYT noted, "Republicans and corporations are criticizing Biden's corporate tax increase proposal," and pointed out that "not a single Republican senator supported the previous $1.9 trillion stimulus package," forecasting that negotiations with the Republican Party will not be easy.

This content was produced with the assistance of AI translation services.