Trumps Plan:
- Building Infrastructure: This is what he mentioned in his acceptance speech: ""We are going to fix our inner cities, and rebuild our highways, bridges, tunnels, airports, schools, hospitals," he said. "We're going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it." His plan is to create millions of jobs in construction, steel manufacturing, and other sectors as well.
- Across-the-board tax cuts for individuals and a slashing of corporate taxes down to 15 percent from 35 percent.
- Repeal and Replace Obamacare: Economists generally have feared that Trump's spending stimulus and tax cuts would increase the national debt by $5 trillion or more. They also believe his fiery rhetoric about currency manipulation and tariffs could spark a trade war. But Trump has maintained that economic growth would more than compensate and not necessitate tax hikes to pay for the infrastructure spending in particular.
http://www.cnbc.com/2016/11/09/donald-trumps-impact-on-the-economy.html
-Anthony Crow
Even though some people might definitely not agree with his ideals/policies, he could be good for the economy of the United States since, as stated in the article, he is looking to build infrastructure by fixing inner cities, rebuilding highways, bridges, tunnels, schools, hospitals. This would also create numerous jobs in the construction, steel and manufacturing. The one drawback on spending heavily on infrastructure would be decease in national saving and rise in interest rates. The rise in interest rates might decreases investment, along with increasing public debt which will need to be funded in the long run.
ReplyDeleteWith a Republican majority in both the House and the Senate, Trump's administration should be able to pass many of the through congress rather quickly. As Trump says, "clearing the swamp" and supporting small government and small business, hopefully good effects are seen rather quickly throughout the economy.
ReplyDeleteThe "clearing the swamp" approach is very similar to the trickle-down reaganomics approach that was not successful. Believing in this theory is simply a logical fallacy. It hasn't worked in the past and has a very slim chance of resulting in positive change for the economy. We shall see.
DeleteIf Trump decides to do everything he is planning the economy could crash, because for all these plans to be possible government spending has to increase tremendously, and taking into account that he is also going to increase the government spending in the military, and also going to cut taxes this will might cause the economy to completely crash and even if it doesn't it is going to increase things like the national debt.
ReplyDeleteWith Republicans controlling the oval office, the senate, and the house, many of Trumps ideas could come to fruition. Many seem to think that the U.S. is going to undergo some inflation as a result. It will be interesting to see how markets continue to react from now until Trump takes office.
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