Donald Trump’s 2016 economic plan focuses on “Making America great again.” He successfully negotiated “the biggest deal of his life” with voters.
After a long and bitter campaign for the US presidency, Donald Trump won against Hillary Clinton and the world’s financial markets are jittery. According to The Independent, “This latter point may take time to be reflected in the markets, and the negative tone on international trade will put pressure on emerging markets. But it is quite plausible that US shares will rise rather than fall over the next few weeks. The dollar should recover swiftly too.”
Donald Trump’s vision is exclusive and protectionist, he believes in curbing foreign trade and immigrations and cutting taxes. Let us here see what he has said on business and economic policy issues during his campaign.
He plans to cut tax rates for everyone. But the most beneficial group will be the super wealthy, according to the Tax Foundation, a conservative think tank. The group says that the plan would cost the U.S. between $4.4 trillion to $6 trillion over a decade. Trump said he plans to reduce the corporate tax rate from 35 percent to 15 percent, which will prevent corporate tax inversion, where corporates base their headquarters out of the country for tax benefits.
Trump wants higher tariffs to curb imports from overseas, especially China. He believes China is reaping the benefits of trade with the US. He has said he wants to levy tariffs of 45% on Chinese imports and 35% on Mexican products. He opposes the Trans-Pacific Partnership deal with Pacific Rim countries and the Trans Pacific Partnership (TPP) between 12 countries around the Pacific rim, excluding China, and the agreement being negotiated between the US and Europe, known as the Transatlantic Trade and Investment Partnership(TTIP).
Trump said he will create 25 million jobs in the next 10 years.
His focus is on keeping manufacturing jobs in the U.S. Outsourcing of manufacturing is a no-no with him.”Our jobs are fleeing the country. They’re going to Mexico. They’re going to many other countries,” he said.
Clinton talked of investing $285 billion in infrastructure over five years and Trump has vowed to double it. As mentioned earlier the route is through large tax credits to companies and corporates. He recently unveiled a $1 trillion infrastructure plan that, according to his advisors Peter Navarro and Wilbur Ross, would add nothing to the deficit.
The calculation is that the trillion investment will create 13 million jobs. Each dollar invested in infrastructure increases gross domestic product by $1.23, Moody’s says. But economists are pessimistic of such an approach as they say the deficit of tax cuts will not be matched by brisker economic activity.
Trump’s views on immigration and his much talked about wall on the U.S.-Mexico border is well known. But as many people have pointed he seems to have no idea of how it will be funded.He’s been firm on the idea, but how the government would finance a wall is less concrete. There have been wild suggestions from withholding migrant remittances to making Mexico pay for it.
But when he met with Mexican President Enrique Peña Nieto to discuss U.S. relations with Mexico, he said the two of them did not discuss who would finance it.
Trump’s focus during his campaign was bringing blue collar jobs back and increasing manufacturing jobs, which have declined by around five million since 2000. But the last 10 years have seen technology replacing a large chunk of these jobs rather than outsourcing.Much of that decline has been caused by improvements in technology, however, not outsourcing. And the biggest hope? That the new President will recognize that U.S. influence is greatest when it co-operates in an open world economy rather than when it tries to cut itself off from it.
Hopefully, occupying the mot important job of the world will force him to rethink some of the issues. The new president will recognize that the U.S. influence is greatest in an open world economy rather than cutting itself off from the world.