Donald Trump’s economic policy can best be described as guns, butter and bridges.
At the moment the United States ratio between its public debt and what it earns as a country every year is 104.7 percent. That means the government owes 4.7 percent more than the country earns.
If America was a business– or a private household—the bank manager would be strongly advising Uncle Sam to earn more money and/or cut expenses or file for bankruptcy.
Now, Donald Trump wants to increase defence spending by ten percent, maintain welfare spending, spend trillions on improving American infrastructure and cut taxes.
Cash to pay for this will come from increased revenues from a stimulated economy, revised trade and defence deals with other countries, cuts in environmental programmes, the diplomatic corps and foreign aid.
Can he do it? Well let’s take a quick look.
Improve Infrastructure– America has plenty of roads, bridges, railways, ports and airports. It just needs to maintain what it has—but that will cost plenty. The American Society of Civil Engineers reckons that $3.6 trillion needs to be spent by 2020 just to maintain existing infrastructure.