This event is in the past.
In the USA, the decision of Donald Trump for rebuilding the nation with the aid of infrastructure will surely help the economy. In fact, he has the potent strength to actually be good to the economy of America. If you look at the last eight years, you will find there has been a tug of war between the fiscal policy and the monetary policy in the USA.
The changes that are to take place...
If you take a look at the monetary policy, you will find that interest rates have been lowered to zero in a bid to pump up the economy. This in turn has led to really slow growth of the economy. The fiscal policy is a blend of corporate tax reforms and government spending on large projects that will pump money into the economy. This will lead to the creation of more jobs. Now, the Republicans are taking over the White House and Congress, which means years of tension may ultimately be broken.
The last President Barrack Obama had a stimulus package that really did not set things rolling in the economy when he started with his term. Paul Krugman, reputed left wing economist has been insisting for an increase in the financial stimulus of the nation. However, nothing has got rolling. Donald Trump shows the promise to change all of that!
Building infrastructure debt
The first point that Donald Trump made in his victory speech was to focus on the infrastructure of the nation. He has promised to rebuild the infrastructure of the nation that will become second to none. He has also said that millions of people will be put to work when it comes to rebuilding highways, airports, schools, hospitals, tunnels etc.
When he was campaigning for the Elections, Trump said that he would be spending heavily on social welfare programs that would unfold a large number of jobs in the manufacturing, steel, construction and other salient sectors of the economy. He said he would focus on transportation, energy, telecom and water utilities. This will lead to the creation of new jobs in the nation and there is a proposal to pass a bill on infrastructure jobs as stated by Nancy Pelosi - House Minority leader.
Donald Trump is also set to slash regulations as he says they are creating a heavy burden on businesses and preventing the creation of new jobs. He also will repeal and replace Obamacare. This is a pledge that he needs to take up with the Republican Congress. Of course, economists are sceptical of the fact that Donald Trump’s cuts in taxation and stimulus package for the infrastructure are likely to spark off a trade war. He has maintained that will compensate and not trigger off hikes in taxation to spend on infrastructure in particular. This is the reason why Paul Krugman insists that the infrastructure debt should be increased in the nation. This will lead to development of the economy and the creation of more jobs for the unemployed people.