Trump victory in President Election will increase infrastructure investment

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Trumps victory may have split a lot of the country and even the world down the middle as to whether it’s a good or bad thing but when it comes to infrastructure investment  a rise is anticipated. During the election campaign Trump pledged a trillion dollars into the improvement of infrastructure over a time period of ten years while offering tax credits to private companies that are offering finance to projects.

Investors are also thought to be able to take equity into future projects which could take the aggregate up to $167 billion. What this could mean for infrastructure is $100 billion extra each and every year for the next decade which will give domestic aggregate demand a boost of 0.5%. This support is set to be available from the latter end of 2017.

It has always been expected that Trump would take on action that is both bold and decisive to try and mend the economy in the US whether or not the severity of these policies is lessened by Congress. If all goes to plan and the promises from his campaigns go ahead then infrastructure is set to have the funds to spend more than they could previously.

The programme will be actioned using debt issuance which is set to improve the economy giving positive action to equities. This sets the future of infrastructure investment in good stead by creating negative rates. This should bring the US back on top and help to reclaim funds lost over the past few years and of course increase employment rates by creating new jobs for those in the field.

Although the brave proposition was frowned upon by some due to the time delay between the proposals and the auctioning late next year, it is though that the fiscal stimulus is set to be significant enough to make big changes.

The most obvious beneficiaries are going to be those sectors that have been exposed to the expenditure of infrastructure including technology and industrial companies. By 2020 this backlog is predicted to cost around 3.6 trillion dollars. Some remain sceptical as to whether the campaign promises will go ahead due to how ambitious the claims are. The true achievable amount will be clearer towards the end of next year. The hopes are that cuts in tax, infrastructure, and of course reform of the health care are high, but yet to be seen.

So long as the promises are followed through the ambitious claims could make a big difference to financial state of the US and are in part the reason for Trumps victory. The future for an increase in infrastructure investment is a step in the right direction but will not happen overnight, which for some is disappointing but worth waiting for. Everyone in this sector is in high hopes of what the promises will bring to the US businesses and of course citizens but the true impact is looking positive and possible for the future.

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