A central part of President-elect Donald Trump’s economic plan -- extra spending on roads, bridges and other infrastructure -- could give the U.S. (and the rest of the world, for that matter) a welcome economic boost. But the benefit won’t last unless the plan is well designed.
New forecasts from the Paris-based Organization for Economic Cooperation and Development -- a respectable outfit, as these things go -- say that a combination of tax cuts and higher public spending could add nearly a full percentage point to U.S. economic growth in 2018. (Thanks to higher global demand, the rest of the world could see a rise of about 0.3 percentage point). The government’s debt burden, measured as a percentage of this larger gross domestic product, could decline.