Whether you like it or not, Donald Trump is the new U.S. president. It is hard to predict how the American economy will flourish under his leadership. As early as now, though, economists think that Trump’s take on immigration, budget, and trade do not make sense.
Soon dubbed as “Trumponomics”, the public was excited about his economic plans. But economists are worried and anxious since the changes he has in mind has a big impact on the country’s economy. CNBC shared this story.
The economy is in a better shape now than it did eight years ago when former President Obama assumed office but Trump has even bolder plans to make America great again. He may have high hopes in repealing Obamacare but the Republicans are struggling in replacing it with a better health care law. Meanwhile, his other policies focus on infrastructure and tax reform.
Trump does not only implement his America first policy within the U.S. but even on free trade too. He initially planned to break trade agreements previously made to other countries like China but fortunately has not acted upon them yet. If so, it can likely lead to a trade war where no one wins and everyone suffers and make other places no longer hospitable to Americans. For instance, European countries like Austria will see the U.S. in a negative light and affect trade relations between both countries.
Economics is a tricky topic since nothing stays absolutely constant. Moreso, bad economic policies can significantly affect relationships with other countries, something that is looming on the horizon if the new U.S. president acts the way he does in business and during the last election. Even areas of culture and the arts may be affected. We can only cross our fingers and hope that President Trump stays level headed before making any drastic economic policies that can backlash with a vengeance.
The blog post Economics During Trump Era was first published on The IPAC Blog