We are currently engaged in a debate as to whether the Biden proposal is really an “infrastructure” bill. It is a meaningless question. Here are the questions that really matter:
- Will the proposed public investments generate an acceptable return to the American people, relative to their costs, based on an increase in national productivity during the foreseeable future?
- Do the investments fill a hole that cannot be plausibly filled by the private sector without the assistance of the government?
If the answer to these two questions is yes, who cares if the investments are “infrastructure,” as that term has been commonly used in the past?
I will be addressing some of the elements of the program in more detail in the future, but by and large, the answer is yes.