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How Do Government Policies Affect the Construction Industry?

As the economic system in the United States has become more complex, the construction industry has been affected by a variety of government policies. Some of these policies have had a positive effect on the industry, while others have created challenges.

What are the positive effects of government policies on the construction industry?

One example of a policy that has had a positive effect on the construction industry is the Tax Cuts and Jobs Act of 2017. This policy reduced the corporate tax rate from 35% to 21%, which gave businesses more money to invest in new projects. This investment led to an increase in demand for construction services, and helped to create jobs in the industry.

Another example of a government policy that has had a positive effect on the construction industry is the expansion of the Earned Income Tax Credit (EITC). The EITC is a tax credit that is available to low- and moderate-income families. The expansion of the EITC has led to an increase in demand for construction services, as families have more money to invest in their homes.

Also another policy that has had a positive effect is the “Buy American” provision in the American Recovery and Reinvestment Act of 2009. This provision required that all construction projects funded by the stimulus package use American-made products. This policy helped to create jobs in the construction industry, as businesses were able to invest in new projects.

What are the negative effects of government policies on the construction industry?

One example of a government policy that has had a negative effect on the construction industry is the sequester. The sequester is a series of automatic spending cuts that were put into place in 2013. One of the areas that was impacted by the sequester was funding for construction projects. The reduction in funding led to fewer projects being built, and this had a negative impact on employment in the industry.

Another example of a policy that has had a negative effect on the construction industry is the tariffs that have been imposed on imported steel and aluminum. These tariffs have led to an increase in the price of these materials, and this has made it more expensive to build projects. This has led to a decrease in demand for construction services, and has resulted in job losses in the industry.

Also, the government shutdown in 2018 also had a negative effect on the construction industry. The shutdown led to the suspension of many federal construction projects, and this led to a decrease in demand for construction services. This decrease in demand led to job losses in the industry.

Overall, the construction industry has been affected by both positive and negative government policies. The policies that have had the most positive effect on the industry are those that have increased investment and led to job growth. The policies that have had the most negative effect on the industry are those that have reduced funding for construction projects or made building materials more expensive.