With the New Year on the horizon. Americans will soon be led by a new president. After a year of sluggish growth but soaring stock market values, what could Donald Trump mean to the U.S. economy in 2017?
CCTV America’s Jessica Stone reports.
What President-elect Trump could mean for 2017 US economyWith the New Year on the horizon. Americans will soon be led by a new president. After a year of sluggish growth but soaring stock market values, what could Donald Trump mean to the U.S. economy in 2017? CCTV America’s Jessica Stone reports.
Despite lows in unemployment, and record highs in the stock market, the U.S. economy ends the year still growing at less than two percent.
Trump said his policies will push U.S. economic growth to four percent, a rate the U.S. has reached quarterly, just 25 percent of the time since 1990, according to analysts.
On taxes, Trump plans to reduce the number of tax brackets for individuals, and slash corporate taxes from 35 percent down to 15 percent.
Economist Sara Hsu said tax cuts that don’t target the poor and middle class, don’t help the economy.
On trade, Trump promises to withdraw from or renegotiate global trade deals like the Trans-pacific Partnership and the North American Free Trade Agreement.
Trump also plans to push legislation to spend $1 trillion building new roads, bridges and airports, which might not seem costly when compared to the money spent on maintaining current American infrastructure, which is projected to cost more than triple that amount.
At odds with Trump’s plans to boost economic growth, is Federal Reserve policy. In December, the bank raised interest rates for the first time in a year and the Fed Chair said faster hikes can be expected if Trump makes good on those tax cuts and his spending priorities.
That will make U.S. exports more expensive and increase costs for multinationals when they convert earnings to dollars. Both factors could pump the brakes on Trump’s pro-growth agenda.
Diane Francis discusses the future of the US economy under Trump
What good and bad can come with Donald Trump’s administration in 2017? To discuss in details the future development of U.S. economy, CCTV America’s Susan Roberts spoke with Diane Francis, editor-at-large for the “National Post,” senior fellow Eurasia Center for the Atlantic Council.