25 Mar 2024

As highlighted by Tavi Costa, today’s US infrastructure spending is likely to dwarf what we experienced during the rebuild period post-WWII by the US and the rest of the world.

Escalating geopolitical tensions and growing disagreements among nations are incentivizing countries to bolster their self-reliance in domestic operations. These circumstances are poised to catalyze what could evolve into one of the most ambitious infrastructure initiatives in history, with the potential to be highly inflationary. The last major infrastructure push in the United States occurred in 1956 with the National Interstate and Defense Highway Act under President Dwight D. Eisenhower. Initially budgeted at $25 billion, equivalent to approximately $207 billion in today's currency. This initiative pales in comparison to the recent Infrastructure Investment and Jobs Act, which authorizes government spending nearly six times that amount, totaling $1.2 trillion. The chart below also considered the Inflation Reduction Act passed in 2022, expecting a significant portion of those funds to be directed towards new infrastructure projects, including those associated with the green revolution and other initiatives. Sources: Tavi Costa, Crescat Capital, Bloomberg


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