1. With the start of the campaign for presidential elections in 2020, candidates proposed a new investment plan in infrastructures. Explain the possible future consequences for the U.S. economy in the long run. Is this policy going to have any effect on economic growth? (establish relationships between investment, production function and productivities). Draw the graphs, use the investment model, and explain.
With the presidential elections of the USA around the comer, the candidates have proposed different economic plans for the betterment of the economy. The newly elected president will have to face the biggest challenge of recovering the economy from the post-pandemic crisis. According to the IMF predictions, the US total output is expected to be reduced by 8%. This makes the candidate's economic plans even more crucial. Let's compare the financial objectives of both Joe Biden and Donald Trump. Joe Biden has put forth a seven-point plan to handle COVID 19 crisis. Both the candidates want infrastructure bills of more than 1 trillion dollars. The republic party, whose candidate is Donald Trump, doesn't want to spend on infrastructure for COVID stimulus bills, whereas the Democrats support it. Trump has stated that he wants 2 trillion dollars for the congressional coronavirus relief package but hasn't provided details of his plan.
In contrast, the Democrats have given a ten-year infrastructure plan for 1.3 trillion dollars. They have focused on the infrastructures that focus on net-zero greenhouse gas emissions. They have also focused on creating jobs for the middle class. This plan includes 400 billion dollars for clean energy research and innovation, 100 billion dollars for modernizing schools. Almost 50 billion dollars are expected to spend on road, bridges, and highway repairs.
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