Early on in President Trump’s new administration, too much of his energy is being placed on divisive ‘cultural’ issues and not enough attention is being paid to economic policies. To the degree Trump has turned to the economy, much of his policy has been focused on issues that will not yield long-term economic benefits but contain considerable risk, like trade with Mexico and China. And so, while Donald Trump is only a few weeks into his presidency, I think we can begin to take stock of what his presidency will mean for the US economy....
So from where I sit I see a Cultural warrior President, who is getting bogged down over divisive and non-economic issues. I also see a President, who when he does turn to economic policy, is at risk of favoring existing businesses rather than promoting markets. And finally I don’t see a President who is focused on the things that will engender more domestic consumption and investment — improving the after-tax incomes of ordinary Americans by lowering middle income tax burdens and increasing wages.
When Donald Trump focuses on middle class incomes, that’s when you should expect consumption and investment — and hence economic growth — to increase. Until then, don’t expect much.Credit Writedowns
If Donald Trump remains a cultural warrior, he will fail