Will President Trump’s Plan Stimulate State Spending on Infrastructure?

By Hyunsun Ahn

New York Time’s reporter Jim Tankersley analyzes PWBM’s predictions for President Trump’s infrastructure plan. "Experts Doubt Trump's Infrastructure Plan Will Boost Economy," compares and further explores the implications of the differences between Mr. Trump's promises and PWBM's forecast.

President Trump promised that his infrastructure plan will stimulate a $1.5 trillion of spending in new infrastructure over the next decade. However, PWBM applies the economic literature to predict that his plan will lead to about $20 billion to $230 billion spending. According to Mr. Trump, his plan will increase average annual economic growth by 0.1% to 0.2%, but PWBM suggests that his plan will not change the size of the economy. PWBM's analysis is also in harmony with other economists like Kevin DeGood, the director of infrastructure policy at the Center for American Progress, who agree that the plan lacks strong incentives.