Jake Medwell is a well known financial advisor and investor. He is a cofounder of 8VC an ethical financial firm that plans to change the world by influencing large companies to make change.
In a recent Q&A session with Loren Smith, Jake expressed his views on the state of things in washington. He mentioned that the jobs report of May 7th was extremely weak and bellow expectations, which is going to make it difficult for the economy. Inflation is moving up. The 0.8% increase of April and May was the largest we’ve seen in a decade, but the Biden proported tax hike should be smaller than origninally set.
Medwell goes on to say that the real worry for people is the spending on infrastructure this year. Many people are happy that phisical infrastructure that has gotten less than 3% of the spending budget has been bumped up to 10% but this is still a very nominal amount for roads and bridges.
Jake Medwell says that President Biden and the Democrats would like to negotiate a bipartisan deal with the Republicans, but the Republicans are set against tax hikes of any kind and they want a bill that restricts its focus on highways and broadbands. So, Democrats need to decide on whether they want to restrict their plans to keep Republicans on the path, or whether they want a bigger deal and want to increase the corporate tax rate.
Mendel also says that people should not expect significant policy change this year. The infrastructure bill we expect over the next several months will come with human infrastructure and a hike in corporate income tax, but will not likely include a highway bill. The last highway bill was the FAST Act of 2015 which had some major policy changes, including that of having truck drivers switch from paper logs to electronic logging devices. However, the FAST Act expired in 2020, and although Congress has enacted a one year extension, the vote will probably be to decide on another extension, instead of a new bill.
Connect Jake via Twitter: http://Linkedin.com/in/jakemedwell