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U.S. President Donald Trump speaks during a strategic and policy CEO discussion as Secretary of Transportation Elaine Chao and CEO of Blackstone Stephen Schwarzman listen in the Eisenhower Execution Office Building in Washington, the United States, April 11, 2017. (XinhuaREUTERS)
By Matthew Rusling
WASHINGTON, April 11 (Xinhua) -- U.S. President Donald Trump is pushing for a massive infrastructure revamp to create more jobs, but it could increase U.S. debt and inflationary pressure as well, experts said.
Trump laid out earlier this month the case for a massive spending bill to improve and renew U.S. infrastructure, which is outdated in some areas of the nation.
Trump's supporters elected him on his promises that he would revitalize the still sluggish U.S. economy through his proposed "great rebuilding" project.
While the official U.S. jobless rate is low, but the figure calculates only those who are actively looking for full-time work. In fact, millions of Americans -- especially in rural areas -- have given up the job search due to their dim prospects.
Desmond Lachman, a resident fellow at the American Enterprise Institute, told Xinhua that the plan will boost employment, especially in the construction sector, and will bring back into the work force at least some workers who are discouraged from seeking work.
"That's the good news. But the bad news is that Trump's massive building project is also likely to add to inflationary pressures on the labor market," Lachman added.
Moreover, Trump's plan could add to the already huge U.S. debt. And because of that, the plan should not be viewed in isolation. Rather, it should be seen together with the large unfunded tax cuts that Trump is proposing and with the proposed increases in defense spending, Lachman said.
This is almost certainly going to cause the U.S. budget deficit to widen, especially if Trump's optimistic assumptions about faster economic growth do not materialize, Lachman said.
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