Will Donald Trump support Democrats’ $1 trillion infrastructure spending plan?

There is no doubt that Donald Trump has gone full Keynesian as he wants to spend $1 trillion on infrastructure over the next 10 years. One of his advisors, Steve Bannon, wanted to replicate FDR’s government spending projects and embrace the idea of Napoleon economics (digging ditches).

According to new reports, Senate Democrats are getting ready to introduce a new plan that would consist of approximately $1 trillion worth of infrastructure spending. Here is what it reportedly looks like:

– $180 billion for rail and bus systems
– $100 billion for water and sewer systems
– $100 billion for energy infrastructure
– $65 billion for airports, ports and water ways
– $20 billion for public and tribal lands

The Democrats say they will offer their support if President Trump gives his nod of approval.

“From our largest cities to our smallest towns, communities across the country are struggling to meet the challenges of aging infrastructure,” New York Democratic Senator Chuck Schumer said in a statement. “Our urban and rural communities have their own unique set of infrastructure priorities, and this proposal would provide funding to address those needed upgrades that go beyond the traditional road and bridge repair.”

Some reports suggest that many Republicans would block the proposal, whether it’s from Trump or from the Democrats. The reason why is because neither Trump nor the Democrats are providing any funding for the plan.

In any event, there is no reason why Trump would reject the Democrats’ plan aside from blatant partisanship.

Here is what the president said in his inaugural speech:

“We will build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation.”

But does the United States need to spend $1 trillion on infrastructure to stimulate the economy? Not necessarily. Here is what Patrick Trombly from the Mises Institute wrote:

“Ultimately, spending on infrastructure no more “creates wealth” than any other kind of government spending. Like all other government spending, it’s a matter of taking money from some people to give to others. The money taken from the taxpayers must be subtracted from the money spent, and we’re left with no net gain. Of course, after the politicians and the government contractors take their cut, they’ll do pretty well. The rest of us won’t be so lucky.”