A new draft of the President’s proposed $1.9 trillion infrastructure package could push the United States into a “world’s most terrible recession,” a new report says.
The Economic Policy Institute, a Washington-based think tank that tracks economic policy, said that the administration’s proposed package would result in the highest economic downturn since the Great Depression, and would also cause job losses and exacerbate the country’s already-growing trade deficit.
“This is a serious proposal that would undermine the nation’s economic recovery and jeopardize the long-term viability of our nation’s infrastructure,” said the institute’s chief economist Mark Zandi.
It would slash regulations and allow states to ignore federal mandates, but the plan would still likely cause a huge increase in the cost of construction and a reduction in investment in infrastructure.
Trump is proposing to slash federal regulation, cut taxes and increase spending by a total of $1 trillion over 10 years, and it would require states to reduce the amount of infrastructure they spend to comply with the new regulations.
States could still waive some of the new requirements, but they would be required to keep a minimum of 1.6 percent of their gross domestic product from new construction or investments in new projects.
Zandi said that this would cause the U.S. economy to contract by between 0.7 percent and 1.1 percent in 2019, and to contract even more in 2020 and 2021.
While many economists have predicted that the Trump administration’s infrastructure plan would hurt the economy, economists at the think tank said that they would still see the plan have positive effects on the U,S.
and global economies.
They said that Trump’s proposal would put the U and other developed countries in a position of economic stability, and that it would allow for the United to move more aggressively to secure the global economy and its future growth.
President Donald Trump, left, and Vice President Mike Pence walk together as they speak during a meeting with the governors of North Dakota and Minnesota during the second day of the White House Summit on Infrastructure, on Jan. 21, 2021, in Washington, DC.
But many economists say that the new administration’s plan will not do enough to spur economic growth.
They said that it will create new jobs and create more infrastructure.
The White House’s plan would allow states that want to spend less on infrastructure to bypass the new restrictions, meaning that it is easier for the U to spend on roads, bridges, tunnels, railways and other infrastructure projects.
It would also allow states the option to spend more on public works and other projects.
“The administration’s proposal will likely create the kind of high-cost, high-investment, high output infrastructure that’s needed to generate growth and prosperity in the decades ahead,” Zandi said.
In a statement, the White, House said that all states have the option of taking advantage of the plan.
For example, states could spend on new infrastructure projects to boost job creation, improve quality of life and create new tax revenue, the statement said.
The administration said that states will have flexibility in how they spend their money, but will still have to comply to the federal regulations.
Some states, such as New York, would be allowed to ignore the regulations altogether, the administration said.
But many states will not be able to.
And while some states could waive some requirements, they would have to keep 1.4 percent of gross domestic price tag in order to comply.
The cost of the projects would also have to be cut by 25 percent.