What Does Donald Trump’s Win Mean for the Economy?
November 29, 2016
Throughout all the chaos and protests from the aftermath of a life-altering election, money is still an important asset to focus on for a growing economy.
Throughout the entirety of the election process, there has been a constant battle between political parties. Now that Republican presidential nominee Donald Trump has secured the spot as the 45th president of the United States, many questions have risen throughout the country about the future of our economy. Will Trump and Republicans bring manufacturing jobs home, or start a trade war? Will there be prosperity or a recession?
Many believe that the answers to these questions are not certain, since Trump’s win shocked numerous people, including economists.
According to the Wall Street Journal, economists are having issues finding a way to react to Trump’s win. Ian Shepherdson, chief economist for the WSJ, said, “Nobody had it priced in, and the uncertainty is absolutely enormous.”
Shepherdson also said, “In the short term, I’m expecting to see a clear and unambiguous drop in business and consumer confidence.”
On the contrary, according to CSNBC, economist Peter Navarro said, “Everything that Mr. Trump is going to do points in the direction of growth,” in regards to our economy.
When it comes to creating jobs for our citizens, according to On The Issues, Trump said in the first GOP debate, “We’re going to make a dynamic economy from what we have right now. We’re going to bring jobs back from Japan, we’re going to bring jobs back from China, we’re going to bring, frankly, jobs back from Mexico. We’re going to bring jobs and manufacturing back.”
On Trump’s campaign website, he says he plans to create over 25 million jobs over the next decade.
Since Trump plans to bring more jobs back to the United States, many agree that this will be beneficial for our economy and our people.
Yet the question still remains: Will Trump’s presidency and the Republican controlled Congress cause a recession similar to that of 2007? Or will it cause prosperity within the country as a whole?
Simon Johnson, MIT economist, told the New York Times that Trump’s presidency would likely cause the stock market to crash and plunge the world into recession.
According to CNN, economist Larry Summers seems to agree with Johnson, stating, “If [Trump] is elected, I would expect a protracted recession to begin within 18 months.”
Also according to CNN, Navarro disagrees with Johnson and Summers, stating that Trump’s plan is the best plan for the economy since Ronald Reagan’s presidency, and Summers finds it ridiculous that many others believe that Trump will begin a recession.
There have been many conflicting arguments against Trump on his plans for our economy, but for now, nothing is for certain on the future of our nation.