To many people’s surprise – and nightmare – Donald Trump got elected as the president of the United States. Although Trump lost the popular votes against Democrat Hillary Clinton, he bagged a landslide victory in terms of electoral votes. Trump won 304 electoral votes, 34 more than what’s needed to get elected.
A look at Trump’s policies
In November 1999, Trump predicted a 35% boost in nation’s economy if the national debt is eliminated. The same kind of thinking can be seen in 2016’s Trump policies as well. In July 2015, he said that if the national debt reaches $24tn, there will be no turning back. While other policies might seem controversial to people, Trump’s bold point out to national debt is unprecedented and its solution is imminent.
Likewise, Trump has frequently been talking about restricting companies to move overseas for production. Per his manifesto, cuts in corporate taxes and building a good rapport with the Trump government are the viable ways to move forward. His plans to increase government spending to improve infrastructures may be able to attract the investors as well as the companies which tend to move out. In the same way, Trump also wants to increase the minimum wage to uplift the living standards of low-income people.
When talking about the economy, Trump has frequently accused China of stealing jobs and manipulating currency to benefit from competitive exports. Likewise, he also threatened Mexico on the same issues, simply because the US holds a massive trade deficit with Mexico.
In October 2016, the Trump said that America is struggling with a growth rate of mere 1% because it doesn’t produce things anymore. Sometimes, he is also heard referring to the US economy as vulnerable and heading to an unforeseeable bubble. Hence, Trump has vowed to be the greatest job-creating and economy fuelling president ever. Also, he promised that the US will soon see a GDP growth rate of 6%, following an end of inversions.
Economist’s take on Trump
In response to Trump’s economic plans, most of the renowned economists such as Paul Romer and Kenneth Arrow have raised their concern – 370 economists signed the letter which recognized Trump as destructive to the US economy. Of those economists, 8 were noble laureates.
Above all, Donald Trump repeatedly uses his multi-billion-dollar fortune and educational credentials to persuade people that he will make American economy great again. He said that the US needs a businessman to clear out $19tn debt, not a conventional politician. To be candid, most of the Americans fell for this – they do like the fact that Trump is not politically correct and speaks people’s minds.