How the Infrastructure Hoax Can Produce All-Too Real Inflation

                                                           

The United States Senate passed the hoax infrastructure bill on Tuesday thanks to the votes of 19 Republican Senators and every single Democrat Senator.   View in browser   August 10, 2021   Today's Top Stories From the Breitbart News Desk The United States Senate passed the hoax infrastructure bill on Tuesday thanks to the votes of 19 Republican Senators and every single Democrat Senator. The senators voting to give President Biden his greatest legislative win will have to make their own separate peace with their constituents. Or perhaps they will not. Many of those who supported the bill have announced their retirement, which means that they plan to make fortunes as lobbyists, and others may simply hope that time will wash away the memory of this surrender. The bill authorizes $1.2 trillion of spending. The Congressional Budget Office says that the bill will directly add over $340 billion to the deficit. Including indirect effect, the bill adds nearly $400 billion. Neither of those figures, by the way, include interest on the money borrowed. For this kind of money, you might expect that the bill will be a big boost to economic growth. Unfortunately, that is unlikely. The low-hanging fruit in terms of economic benefits of infrastructure was picked long ago. Despite the massive costs, we aren't doing anything nearly as effective as building the interstate highway system or electrifying rural America. Much of the infrastructure we'll build in the future will be marginal improvements and repairs to existing structures. Some of the money is even being spent to tear down roads that are now disliked for one reason or another. The Penn Wharton Budget Model finds that the legislation will add one-tenth of one percent to the GDP by 2050. There is, however, the risk that it will spur inflation. The fiscal expansion in the bill creates additional demand for goods and services in the near term, but the slight benefits stretch out over time. That's a recipe for near-term inflation at a time when inflation is already running much hotter than expected. The economy is not starved for demand right now, but the politicians are rushing to keep piling it on. We'll get the latest update on the inflation front tomorrow morning when the Department of Labor releases the Consumer Price Index. The median estimate for the July figure is a 0.5 increase in headline inflation, which would be a big slowdown from 0.9 percent in June. This has been running substantially above expectations, nearly doubling the consensus forecast in June, and we anticipate a repeat of this Wednesday. – Alex Marlow & John Carney Breitbart News Network     TOP STORY   China to Execute Canadian amid Huawei CFO Scandal A Chinese court Wednesday rejected Canadian citizen Robert Lloyd Schellenberg's appeal of his death sentence, imposed in January 2019 after Canada arrested Huawei Chief Financial Officer and Chinese Communist Party heavyweight Meng Wanzhou for extradition to the United States. Canada's ambassador to China explicitly linked the two cases Tuesday and denounced China's "cruel and inhumane punishment." Schellenberg was arrested for drug smuggling in China in 2014 and was originally sentenced to 15 years in prison after he was tried and found guilty in 2018. Schellenberg appealed his sentence. In January 2019 – a month after Meng was arrested in Vancouver and held for extradition to the United States on charges of fraud and conspiracy to violate sanctions against Iran – a Chinese court suddenly decided his lengthy jail term wasn't severe enough and upgraded it to a death sentence. [Click here for more]   IN OTHER STORIES... Bidenflation: Real Hourly Pay Suffers One of the Worst Collapses Ever It is getting harder and harder for American workers to make ends meet as rising inflation outpaces pay gains, pushing down inflation-adjusted compensation at a pace almost never seen before. Adjusted for inflation, hourly compensation fell 2.7 percent in the second quarter, data released by the Bureau of Labor Statistics on the nonfarm business sector... [Click here for more]   Biden's Broken Economy: Small Business Owners Still Can't Find Workers or Inventory Owners of small businesses lost confidence in July as Covid-19 infections accelerated and companies from Amazon to Wells Fargo announced they would push back the reopenings of their offices. The NFIB Small Business Optimism Index fell 2.8 points to 99.7., the National Federation of Independent Business said Tuesday. In June the index had claimed... [Click here for more]   Swing State Democrats Tank 'Hire American' Rule in Infrastructure Bill A handful of Senate Democrats, representing swing states, joined the majority of their caucus in helping tank a plan that would have required American infrastructure jobs go to American citizens and legal immigrants, not illegal aliens. Last week, Sen. James Lankford (R-OK) proposed an amendment to the infrastructure bill that would have prohibited federal funds going to any entity that failed to enroll in... 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