The time has come when Donald Trump will actually have to translate his spoken words about rebuilding America into action and the Americans are eager to see how it is done. Few would differ from Trump’s perception about infrastructure development as it is the only way to rebuild America. What is concerning is that people are yet not sure about the way it will happen. The fiscal challenges are many and mighty and there is yet no concrete plan from Trump about how he wants to overcome it. Although there are some sketchy ideas floating around, these are not enough to put to rest all the scepticism that surrounds the rebuilding process. How really is it going to be done and will it really be beneficial for the American economy in days to come?Daunting task of bridging the gap
It is nothing new that there has always been considerable gap in funding needs and the finance available for infrastructure projects. Government funds have been the primary funding source for infrastructure from the early days and it remains so. However, there has been a systematic cut in government budgets for infrastructure for more than fifty years as it has been always difficult to allocate adequate funds for infrastructure after meeting other requirements.
The cost of operations and maintenance of infrastructure kept on rising rapidly and construction work has taken a hit for want of funds. Over the years the gap in finance requirement has kept increasing. Donald Trump faces the daunting task of closing the gap and giving new momentum to infrastructure projects. How he braves the odds to save America is what everybody is curious to know.The solution
Trump has a two-pronged strategy to save the country from falling apart and rebuild it. He has envisaged mass engagement of the population in building infrastructure that leads to economic growth and prosperity. Being aware about the need to encourage more private investment, which has always remained a miniscule of the total financial requirement, he has planned for tax credits for investors. The fiscal support for the credits is expected to be made available from the revenue generated from the projects.
In another move to provide tax relief, he has planned for tax cuts of $6.2 trillion in the next 10 years. Considering this as the latest version, federal debts are to rise considerably over the next decade and reach $7.2 trillion including interest. By the year 2036, the figure will touch $20.9 trillion.
How the proposals stand in the face of mounting debts of the country ($19 trillion and growing) is the question that is being raised in every quarter. It is a do or die situation for Trump because what has been perceived has to be achieved without hurting people further. There is no way to turn away focus from infrastructure because doing so would cause even more harm.
America in now passing through a crucial phase of reconstruction and only time will tell how good it can all be for the economy.