The US Infrastructure Plan May Be Hugely Inflationary

The US Infrastructure Plan May Be Hugely Inflationary
President Joe Biden speaks about his infrastructure plan in Pittsburgh, Penn., on March 31, 2021. AFP via TCA
Daniel Lacalle
Updated:
Commentary

What’s the worst thing a government can do when there’s high inflation and supply shortages? Multiply spending on energy- and material-intensive areas. This is exactly what the U.S. infrastructure plan is doing and—even worse—what other developed nations have decided to copy.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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