Inflation

Many economist are concerned that additional government spending will aggravate the inflation problem. The infrastructure bill which allocates $1.2 trillion to various projects will not have that effect because the spending will not occur for a number of years if at all since environmental concerns will slow down many projects. The Build Back Better bill however is a different story. This money will go to consumers who will put it into the economy when they get it. It includes: 320 billion for tax credits to install solar panels and EV 400 billion for universal pre K 200 billion child tax credits 200 billion four weeks paid leave 165 billion applied to healthcare premiums 150 billion affordable home care 150 billion affordable housing This adds $1.5 trillion to the money supply in a short time period. This will raise prices by 15% although the administration says it will lower inflation. Not sure how that would work.