Economics

The Penn Wharton Budget Model estimated that a proposed social policy spending bill would add $275 billion to the national debt over a decade, not accounting for the legislation’s effects on economic growth.

Kent Smetters of the Penn Wharton Budget Model said that if the spending proposals in President Biden’s bill are made permanent, the full cost would be more than twice the official estimate.

Research co-led by Ioana Marinescu of the School of Social Policy & Practice found that 20% of American workers have very limited local employment options. “It means that employers have the power to underpay those people,” she said. Additional research found that employers underpay workers by approximately 17%.

Steve Viscelli of the School of Arts & Sciences spoke about the effects of deregulation on the trucking industry. “So much of this is about the inefficient use of time. Is there a shortage of truck drivers? Probably not. But they are certainly being used less and less efficiently,” he said. “That’s the long-term consequence of not pricing their time.”

Amy Castro of the School of Social Policy & Practice spoke about the importance of universal basic income programs. “Needs are flexible, and the only thing that’s as flexible as needs is cash,” she said. “You can’t budget your way out of poverty. If you could, all this money that’s been poured into financial literacy would have resulted in upward mobility. And it hasn’t.”

Kent Smetters of the Wharton School said the economic boost provided by the newly passed federal infrastructure bill will be muted by government borrowing. “It’s pretty much a wash,” he said.