Trump to unveil US$1.5 trillion infrastructure plan
The president's budget will include US$200 billion earmarked for projects to fix roads, bridges and other crucial infrastructure.
(Updated: )
Ricky Lim ·
Investing in infrastructure is a necessity to support the economy and house the people.
But after such a massive tax cut, how to finance the mammoth $1.5 trillion infra spending?
This will jack up the already mammoth debt of $20 trillion.
I guess by borrowing - and this will cause the cost of borrowing soaring - due to higher and higher risk of default in repayment.
Inflation will rise due to huge government spending and lowering of taxes.
Interest rate will have to rise rapidly to curb inflation.
And this will put a strain on the borrowers to buy assets or finance their businesses - resulting in the ability to repay the debt - causing risk in the financial sectors.
But after such a massive tax cut, how to finance the mammoth $1.5 trillion infra spending?
This will jack up the already mammoth debt of $20 trillion.
I guess by borrowing - and this will cause the cost of borrowing soaring - due to higher and higher risk of default in repayment.
Inflation will rise due to huge government spending and lowering of taxes.
Interest rate will have to rise rapidly to curb inflation.
And this will put a strain on the borrowers to buy assets or finance their businesses - resulting in the ability to repay the debt - causing risk in the financial sectors.
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