Hillary Clinton and Donald Trump disagree on a lot, if not most things. There is, however, one issue in which they seem in agreement….. both candidates have expressed support for increased infrastructure spending. This is good news for manufacturing and heavy industries.
…..Trump has supported rebuilding infrastructure from the beginning of his campaign.
“Rebuild the country’s infrastructure; nobody can do that like me, believe me,” he said in the speech announcing his candidacy.
“It will be done on time, on budget, way below costs, way below what anyone ever thought. I look at these roads being built all over the country and I say, ‘I could build these things for one third.’ We have to rebuild our infrastructure: our bridges, our roadways, our airports.”
…..Clinton, for her part, has said she would increase federal spending on infrastructure projects by $275 billion in the five years following her possible inauguration.
Monetary policy has been over-used and is not having the desired effect. Instead of new capital investment, low interest rates have encouraged speculative investment in stocks and real estate, driving up prices to unsustainable levels, and stock buybacks with similar results.
Infrastructure spending is absolutely essential to get the global economy back on track. It boosts employment and national income, saves government spending on welfare (unemployment) programs, and encourages new capital spending. Voters are rightly afraid of rising public debt but investment in productive infrastructure is a no-brainer.
Hat tip to Steve L.