Biden’s Economic Dreams Get Boost

by Jan Frazier

Washington, D.C. (Washington Insider Magazine) – American companies are putting money into new technology, hoping that President Biden’s “plans to fire up the economy will lead to stronger wages and higher longer-term growth.”

Computer and other technology investments is the biggest that America has seen in years. It’s not because people are spending more now that the pandemic has lessened. In January, February, and March, “investment was up nearly a quarter from the same period in 2019.” It should be noted that that period of time in 2019 was before the pandemic had hit. 

A new survey shows that now as America and the world emerge from the pandemic and the government has given the nation huge amounts of money for the economy, almost “60 percent of chief executives at large corporations expect to increase overall investment this year.” There is a large consumer demand, and corporations as well as individuals try to be optimistic about the economy.

The Federal Reserve as well as President Biden are trying to raise productivity and continue to raise the economy. There are roadblocks, however, such as “underwhelming job growth and a potential spike in inflation.”

Skanda Amarnath, director of research and analysis at Employ America, said “There is a real awakening from a decade-long slumber in business investment. This is a healthy and welcome development.”

President Biden still has plans to spend trillions more on America’s infrastructure to help our economy. Biden hopes that it will be the “key to producing more well-paying jobs.”

Productivity gains are at the center of that effort. Productivity has not been good since the mid-2020s, and it is linked to wage increases in jobs. If investments in technology strengthen the worker output, then more goods and services will be delivered. It’s a real plus, then, when people have the money to buy the products.

Raytheon Technologies CEO, Gregory Hayes, said on Tuesday, “Automation’s going to be absolutely essential to competitiveness.”

If the pace for investments continues in processing equipment, “it would amount to $610 billion, compared to an annualized $494 billion in the first quarter of 2019.”

SOURCE

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