Infrastructure

Biden's infrastructure plan will spur economic development and create new high paying jobs and will use corporate taxes to help pay for it. According to the proponents of modern monetary theory (MMT) raising taxes is the wrong thing to do as that will take money out of the economy and slow growth. Political pressure based on the old economic methods forces the idea of paying for benefits and so the tax increase. The plan puts money in the hands of the private sector and the tax takes money out of the private sector. One force working against the other. Every time this has been done it was followed by recession. MMT teaches to expand government spending until full employment is reached and then increase taxes to slow inflation. MMT is not well known at this time so the old ways will prevail.