The University of Pennsylvania Penn-Wharton Budget Model found Thursday that the so-called bipartisan infrastructure bill would “have no significant impact” on economic growth.
The Penn-Wharton model found that the so-called bipartisan infrastructure bill, otherwise known as the Infrastructure Investment and Jobs Act, would result in $548 billion in additional spending, $132 billion in new taxes, and $351 billion in deficits, all of which would not lead to additional growth in GDP by 2031 or 2050.
The Penn-Wharton Model also found that selling wireless spectrum and selling some of the nation’s strategic reserve of petroleum “effectively adds to government debt” rather than serving as an offset to the $1.2 trillion infrastructure bill. The model explained:
In addition, the announced deal allocates revenues from the sale of spectrum and oil totaling $93 billion. Proceeds from spectrum sales are slated to go to the U.S. Treasury, so this revenue source does not significantly change the government’s budget relative to the baseline. Furthermore, we assume that the strategic petroleum reserve will be restocked to its baseline value at some point in the future. Therefore, applying these sources of funding to infrastructure aid effectively adds to government debt.
The Penn-Wharton Model’s release arises as the Senate remains prepared to invoke cloture and advance the bill potentially on Thursday. This means that the Senate could pass the bill by Saturday.
The Penn-Wharton Model serves as one of the key analyses for lawmakers to understand proposed legislation’s fiscal and economic impact, alongside the Congressional Budget Office’s (CBO) analysis. A dismal report from the Penn-Wharton Model and the CBO could undermine lawmakers’ support for the bill.
The analysis also found that the bipartisan bill would not boost American workers’ wages.
“Overall, workers’ productivity is unchanged, which is reflected in wages that do not change in 2040 and 2050,” the report read. “Overall, similar hours worked and lower private capital lower GDP, an effect that is offset by the productivity benefits of the infrastructure investment. Overall, GDP does not change in 2031, 2040, or 2050.”
Sean Moran is a congressional reporter for Breitbart News. Follow him on Twitter @SeanMoran3.