Increased Infrastructure

The recently passed $1.2 trillion infrastructure bill, including $550 billion in new spending beyond the current baseline should boost long-run GDP by, at most, 0.1%, or $22 billion/year. As infrastructure spending ramps up, GDP will rise by an extra $33 billion in 2022 and peak at $110 billion of extra growth in 2026. By 2031, GDP growth will be boosted by just $33 billion as spending fades.