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RSM US LLP

The Real Economy: January 2022

January 11, 2022

The infrastructure package will modernize the economy

THE REAL ECONOMY | January 05, 2022

Authored by RSM US LLP


The $1.2 trillion Infrastructure Investment and Jobs Act will increase productivity, reduce business costs, cut carbon emissions, improve living standards and have the potential to lift economic growth above the current long-run rate of 1.8%.


Once one accounts for spending at the state and local level, infrastructure spending will reach nearly $3 trillion over the next eight years. This represents the most significant modernization of the nation’s infrastructure since the middle of the 20th century.


There are near-term macroeconomic benefits to infrastructure investment—the multiplier effect with real interest rates being negative is likely larger than the 1.25 per dollar spent on traditional hard infrastructure. But the most encouraging benefit of the initiatives will take place over the long run as they bring a payoff to both productivity and growth that will be greater than our estimate suggests.


In this month’s The Real Economy, we take an industry-by-industry look at the significant impact that The Infrastructure Investment and Jobs Act will have on productivity and growth in the American economy. We also look at the prodigious savings that American households built up during the pandemic. They are starting to spend that down now, an encouraging sign for the economy.

Download the full January 2022 economic report.


This article was written by Joe Brusuelas and originally appeared on 2022-01-05.
2021 RSM US LLP. All rights reserved.
https://rsmus.com/economics/the-real-economy/the-real-economy-january-2022.html

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Hylant is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.

For more information on how ​Hylant can assist you, please call 800-249-5268.