The budget would focus on transportation and other public works. The United States is already experiencing inflation rates similar to those of the 2008 crisis.
The Infrastructure Bill of the United States of America got finally approved by the House of Representatives after a couple of months of disagreement among legislators.
The approval of this policy, which allows the spending of up to 1.3 trillion dollars in various projects, took place in the highest legislative entity of the North American country during the night of November 5.
According to various local media reports, the approval of this new policy arrived with a majority of 228 votes in favor and 206 against it. Now, the policy rests on the office of the president of the United States of America, Joe Biden, awaiting the final signature, almost three months after the Senate approved the document in the first instance.
The resources approved in this Infrastructure Law would rely on transportation projects, such as roads, bridges, airports, or vehicles with zero polluting emissions. It also includes some budgets for broadband internet, potable water, and energy.
However, some wonder where the money would come from when it comes to paying for all that monetary issue, one of the most problematic issues in American history. The Democratic Party, to which President Biden and the first promoter of the policy belongs, includes among the revenues to pay off the public debt the tax collection of the bitcoin and cryptocurrency industry.
Taxes on this industry got included in this Infrastructure Law, despite an amendment proposal that sought to exclude bitcoin and cryptocurrencies from this tax proposal. This proposal got rejected in the Senate before the Infrastructure Bill arrived at the House of Representatives, where it has just finally received approval.
Inflation on the Prowl
As its promoters celebrate the passage of this law, which allows Biden massive public spending with a focus on social benefits and infrastructure to Americans, some see an imminent danger: new high peaks for inflation and an increasingly weak dollar.
Last month, the interannual inflation rates of the North American country approached levels near the ones that generated the economic crisis of 2008, with an inflation of 5.4% between September 2020 and 2021.
When comparing this inflation level with the percentage of September of the previous year, year-on-year inflation has tripled in just 12 months in the United States of America.
Meanwhile, various personalities from the financial world firmly believe that this phenomenon will continue in the long term. Peter Thiel, the co-founder of PayPal, recently spoke about the need to hedge against sustained inflation.
For this reason, the chairman regretted not having purchased more bitcoin before since the volatile cryptocurrency price is one of the consequences of that inflation, according to him.
By: Jenson Nuñez
