During the recent Republican debate, Donald Trump was faced with an unusual question by one of the audience members: How would he balance the books, given the massive tax cuts he has put forward?
Trump replied with his infamous statement; saying that the citizens need not worry about the US economy, he will make the domestic economy of America great again.
But this leaves us to really wonder how Donald Trump’s possible presidency will affect the global economy. US is a leading economic power, though not at its pinnacle, but still substantially ahead of the economies of other countries. Any factor affecting the US economy will certainly have an impact on the economy of the rest of the courtiers.
Trump’s steep economic platform rests on three pillars: immigration reform, tax cuts and trade reform; out of which immigration and trade are huge factors that can take a toll on the global economy.
Donald Trump had stated in one of his speech that China is a “currency manipulator,” and had suggested that deportation of undocumented Chinese – which are over 110,000 in USA – is especially imperative. This would negatively impact China’s population and also inversely relate to its economic growth; and this will eventually affect the economy of the many countries that depend on China for cheap labor and finished goods.
Strengthening domestic trade within the US – as proposed by Trump – wouldn’t be easy either. US is a country that depends almost entirely on imported finished goods; changing that within the span of four years is extremely far-fetched.
Donald Trump’s economic propositions can be inferred as biased and unprecedented. Implementation of these proposals can have a multifarious impact on the global economy, and recent research shows that this impact will most probably be negative.