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Infrastructure Spending and Deficits

November 21, 2016

Sen. Chuck Schumer (D-NY) gave an interview with Chris Wallace on Fox yesterday and revealed the Democrat’s strategy for “getting along” with President Trump.

Sen. Schumer rejects repeal of Dodd-Frank and Obamacare, but believes that the Democrats can work together on Infrastructure Spending perhaps within the first 100 days of a Trump Administration.

But, he insists that it must involve “real” spending, not tax cuts or tax credits.

The connection between asphalt and politics is as old as the automobile. Clever politicians let contracts for roads in exchange for kickbacks and campaign financing. Recently privatization of major roads in Chicago were conducted by the Daley Administration with enormous cash payments to the City of Chicago.

There is money in infrastructure whether you’re building or selling roads.

That tradition and President-Elect Trump’s call for massive improvement of our infrastructure is positioning the Trump Administration for collision with House and Senate limited government conservatives. Add to that his stated belief that he will not touch Social Security, Medicare or Medicaid Entitlement programs, and a political train crash may soon occur.

When President Obama was sworn in, the debt was $10.626 trillion. Today it’s $19.78 trillion.

By all objective measures, new spending is not the way to create economic growth. More on the President-Elect’s spending on infrastructure in our next post on this topic.  But, here is where I’m headed

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