(on November 15, US President Biden attended the signing ceremony of the infrastructure investment act at the White House in Washington.) On November 15, US President Biden officially signed the infrastructure investment and Employment Act (hereinafter referred to as the act). The signing of the bill was hard won. On August 10, 2021, the US Senate passed the bill. Since then, the Biden administration and members of both parties in Congress have had a fierce political quarrel for months, and finally promoted the passage of the bill in the U.S. House of Representatives on November 10, taking a key step. In Biden's view, the bill is an investment "only once in a generation" and has "milestone significance". Why is the Biden administration eager to promote the "slimming bill"? After winning the support of 13 Republicans, the bill passed in the house of Representatives by 228 votes to 206 votes not only adjusted the budget scale of infrastructure investment from the initial $2.3 trillion to today's $1.2 trillion, but also stripped off the social infrastructure construction content in the original plan and incorporated it into the "better reconstruction" bill. Why is the Biden administration willing to compromise and eager to promote the slimming bill? There are three main reasons: First, the election promises were fulfilled too slowly, which seriously damaged the credibility of the Biden government. The "100 day plan", "employment plan" and "family plan" put forward by the Biden government after taking office have been implemented too slowly due to the epidemic and political disputes between the two parties, which has aroused people's doubts about the unfulfilled campaign commitments. The introduction of the bill not only fulfilled the campaign promise, but also helped to shift people's attention from fighting the epidemic to future plans. Second, the overall decline in support, facing the pressure of the mid-term elections. According to the data of a joint public opinion survey conducted by Suffolk University, President Biden's support rate fell to 38%, a record low. This put great pressure on the Biden administration. On November 2, the Republican Party won the governor's election in Virginia, which is regarded as the wind vane of the U.S. mid-term election, warning the Democratic Party of an adverse situation in the mid-term election, and the Biden administration is eager to win more voters' support. Third, enhance the economic strength and competitiveness of the United States and continue to "lead the world". The bill not only aims to stimulate employment in construction and manufacturing, but also aims to enhance the economic competitiveness of the United States through investment in more traditional infrastructure fields such as transportation, energy, water and telecommunications. The Biden administration believes that the United States has not carried out construction, investment and research for the future, and failure to do so is tantamount to giving up "leading the world". Therefore, at the beginning of its infrastructure plan, it said that it could compromise, but it could not do nothing. Smashing the "iron foundation", what impact does the bill have on the U.S. economy? The bill covers a wide range of contents and needs to be further evaluated to determine its far-reaching impact on the U.S. economy. Some of the $1.2 trillion plans are existing infrastructure projects, including the water infrastructure bill recently passed by the Senate and the ground transportation bill approved by the Senate Commerce, science and Transportation Committee and the Senate Environment and Public Works Committee. Of the newly increased expenditure of about $550 billion, $284 billion was spent on roads, bridges, passenger and freight railways, public transport, airports, ports and waterways, pipeline modernization, truck transport safety and traffic safety, electric vehicle charging infrastructure, low-carbon and electric buses and ferries, and $269 billion on power, broadband, water conservancy Network and climate resilience, environmental restoration, water storage in the West and other infrastructure construction. Among them, the bill finalized $7.5 billion for electric vehicle charging infrastructure, less than 5% of the $174 billion electric vehicle infrastructure expenditure proposed by Biden government, which is the biggest difference from Biden's initial proposal. As can be seen from the above expenditures, the bill aims to promote the renewal and upgrading of infrastructure, so as to create employment opportunities for the people and stimulate further economic recovery. According to the total investment scale, the White House expects that the bill will be combined with the president's "reconstruction framework" to create about 1.5 million new jobs every year in the next 10 years. At the same time, large-scale infrastructure construction will expand new demand for construction services, equipment and building materials, and further lead to new investment demand for digital services, Internet of things and new energy. Moody's estimates that the total GDP will increase by about US $1.8 trillion, which will greatly promote economic development and stimulate economic recovery. In addition, the infrastructure bill emphasizes the construction of new energy facilities such as broadband Internet digital infrastructure, clean energy and charging piles, which helps to realize the upgrading and transformation of digital economy infrastructure and comprehensively enhance the vitality and competitiveness of the U.S. economy. However, we should also see that the bill will increase government expenditure and promote the increase of government debt. According to the estimates of the Congressional Budget Office, the plan will increase the fiscal deficit by US $256.2 billion in the next decade, further challenge the US debt ceiling and pose potential debt risks. In addition, the current US inflation is high, and the CPI hit a new high in nearly 30 years in October. Large-scale infrastructure expenditure may make the inflation situation more severe and increase the pressure of price rise. Is the bill reliable in driving the global economic recovery? From the perspective of American product consumption demand structure and American economic and technological leadership, the implementation of the bill will have spillover effects on the global economy, have multiple impacts on the global economy through infrastructure construction, raw materials, digital technology services, industrial chain division of labor and other fields, stimulate global economic recovery and drive global economic growth. But at the same time, the implementation of the bill also brings risks to the global economic recovery in the post epidemic era. First, promote the continuous rise of global commodities. Large scale infrastructure construction has a large demand for global bulk commodities such as iron ore, non-ferrous metals and crude oil, or will impact the supply and demand system of bulk commodities, resulting in an imbalance between supply and demand of some bulk commodities. According to CICC's calculation, the bill will increase the consumption of raw materials such as 4 million tons of steel, 2 million tons of iron ore and 100000 tons of copper. This will further promote the high-level operation of crude oil, copper, iron and other bulk products, exacerbate global inflation expectations, and trigger global macroeconomic policy turmoil. Second, the requirement to buy American products in the bill has the effect of "beggar thy neighbor", which is not conducive to extensive economic cooperation and global economic recovery in the post epidemic era. The third is to induce the global sovereign debt crisis. The bill will not only promote the US fiscal deficit, but also urge other countries in the world to increase infrastructure investment and debt expenditure. According to IIF statistics, in the second quarter of 2021, the total global debt reached US $296 trillion, and the debt rose to about 353%. The expenditure based on high debt may further accumulate debt risk and impact the global financial system. In conclusion, the impact of the bill will ultimately depend on whether the funds can be truly implemented. In view of the fact that COVID-19 is facing major challenges in the supply chain, logistics and labor market around the world, the effective implementation of the bill is still to be observed. (Xinhua News Agency)