President Joe Biden is proposing to transform the U.S. energy sector, with the goal of making it energy-efficient, environmentally friendly and a catalyst for long-term economic growth.
Biden’s $2.6 Trillion proposed Infrastructure plan is promised to produce good paying jobs, and includes a shift to renewable energy, electric vehicles and upgrades to the nation’s power grid. His plans call for 100% renewable energy in the power sector by 2035.
The four main areas of spending include transportation, water/electricity/broadband, care and innovation. The proposal pairs traditional forms of infrastructure with vital services.
Senate Majority Leader Chuck Schumer says he believes the American people know infrastructure needs to be done “in a new green way”, with hopes Republicans will work on the package.
Stony Brook’s Stephanie Kelton says “the economy is depressed enough to accommodate (infrastructure spending) without creating an inflation problem.
“You can safely commit to spending more into the economy’s infrastructure to build back better agenda, before you need to think about offsetting that spending to reduce the risk of inflation.”
There are supply chain problems as a result of the pandemic, meaning the United States does not have the supply chains to satisfy the demands out there.
Former CKE CEO Andrew Puzder says inflation is a factor of supply and demand.
“If you’ve got incredible demand but the supply can’t be met, prices are going to go up.
“And that’s what’s going to happen. This continued spending is not going to help the economy, it’s not going to help us going forward; it may be a short intake.”
The clean energy sector has managed to thrive however, despite four years of indifference at best and opposition at worst from the Trump administration.
By the end of the decade, Bloomberg New Energy Finance estimates that global investment in offshore wind development will reach almost $60bn, up from $11bn this year.
