Policymakers around the world are concerned about a mismatch between infrastructure investment needs and actual investment. In the U.S., the American Society of Civil Engineers estimates cumulative infrastructure investment needs at $2.6 trillion between 2020 and 2029 (American Society of Civil Engineers 2021).

Co-Author: Mels de Zeeuw

While all politicians exaggerate, US President Joe Biden’s claim that his proposed $3.5 trillion spending package “costs zero dollars” rises to a higher plane, and Americans aren’t buying it. Even if the legislation was fully covered by tax increases, the costs for the economy would be significant.

Hoover Institution fellow John Cochrane discusses the history of the central bank expansion, and how little steps taken here and there mushroomed.

Policymakers should not have been caught off guard by surging prices and shortages of goods and labor. Practically the entire post-pandemic agenda is built around policies that stoke demand and discourage work, making supply-side constraints entirely predictable.