In practice, it is likely to prove difficult to get such a large-scale infrastructure programme with substantial private sector involvement up and running quickly.
There may be political delays, obstacles and compromises in getting tax rates down. However, the direction of travel is clear. The US needs to invest more on itself, while private and public spending need to go up.
Forecasters will probably lift their US growth forecasts a bit, but will need persuading just how quickly and extensively the growth rate can be raised.
For Mr Trump, there needs to be a rebuilding of the US, “to make America great again”. The president-elect won’t be the last of the big spenders, but a big spender is what he wants to be [and] enough Americans want to go with him on that journey.
John Redwood is chief global strategist at Charles Stanley
