Since the election of Donald Trump, the economy has responded significantly. Of these responses, three were discussed in the most recent episode of the Planet Money podcast. The first indicator is the S&P 500. The futures trading of this market tanked over night. The first reason that this occurred was that the markets usually do not like something unexpected happens which happened with Trump's victory. The second indicator is the exchange rate of the Peso to the US dollar which is 20. Throughout the course of Trump's campaign the peso had been tracking the polls of the US election. As Trump began to do well in the polls the Peso became weaker, and when Clinton did well, the Peso became stronger. This was a response toward Trump's stance on NAFTA, which is something he has constantly denounced. The night that Trump was elected president, the value of the Peso fell by 10 percent overnight, the biggest decrease in 22 years. If Trump is to follow through with his policies, Mexico could go into a recession in the next year. Another indicator is $1.5 trillion over 10 years. This number represents an ongoing mystery about Trump's tax plans that nobody has been able to solve. The number represents the amount of money it will cost the government in the next ten years with Trump's tax cuts. In order to pay for a $12 trillion tax cut, you would have to borrow a lot of money, increase the national debt. Or you would have to cut government spending, something close to a quarter of the federal budget.
http://www.npr.org/sections/money/2016/11/09/501458860/episode-734-the-trump-indicators
It is interesting how Trump was able to focus much of his campaign around unemployment especially in the Rust Belt swing states which is why he won the election. Because of his portrayal of how NAFTA lost so many blue collar jobs in Wisconsin, Michigan, Ohio, and Pennsylvania, Trump turned blue into red.
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