Author Archives: Ingo Walter

Trump and the Trillion Dollar Infrastructure Finance Challenge

On 9th November, after his victory in the American Presidential election, Donald walter-front-cover-biggerTrump declared, “We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We’re going to rebuild our infrastructure, which will become, by the way, second to none.”

His eyecatching pledge to spend one trillion dollars on infrastructure projects over ten years has raised an important issue: how will this be financed? Trump has proposed ideas such as public-private partnerships and a “deficit-neutral system of infrastructure tax credits” to encourage private investment. House Democratic leader Nancy Pelosi has signalled support for infrastructure investment, but she has also noted that, “on Capitol Hill, the divide is always over how to pay for it.” Continue reading