When Donald Trump won the presidential election, most analysts were stunned. It seems that virtually no one expected Trump to actually take the election away from Hillary Clinton; she was ahead in the polls throughout most of the campaign cycle. Trump's victory left Wall Street almost giddy as investors responded to his campaign promises of tax cuts, financial deregulation and spending on infrastructure. However, a prominent economist is now claiming that Trump's economic policies could crash the markets.
Respected Economist Fears Trump's Economic Plans Could Destroy the Markets
Nouriel Roubini is a professor at the Stern School of Business at New York University. Roubini has worked for the World Bank, the U.S. Federal Reserve and the International …show more content…
He has threatened companies that move manufacturing operations outside of the United States with substantial levies to import their foreign-made products back into the country. He has publicly accused numerous corporations of price gouging, and his restrictions on immigration are making it more difficult for companies to attract talent, particularly in the technology industries.
Roubini Feels Trump's Stance on Trade Could Harm the Economy
Roubini is concerned that Trump's tough stance on trade agreements could result in trade wars that could impact markets and economies around the world. In an opinion piece published by U.S. News in March 2016, Mary Kate Cary argued that trade wars and import tariffs will result in higher prices, increased unemployment and rising inflation, thereby hurting the working class and poor the most. Roubini holds the opinion that the enactment of the Smoot-Hawley Tariff Act in 1930 worsened the Great Depression due to the trade wars that resulted.
Roubini Worries That Trump's Damage-Control Efforts Could Exacerbate …show more content…
In an article posted on RSM.com, economist Joe Brusuelas states that uncertainty about the status and role of the United States in the global economy could create issues that hurt long-term growth. He also expresses an opinion that "significant tax reform" and changes to enhance productivity will be needed for long-term growth to exceed more than about 1.5 percent. Brusuelas notes that Trump plans to reduce taxes on pass-through entities, which account for approximately 95 percent of the firms in the American economy. This would also help the middle market, which employs about 33 percent of the labor force and represent approximately 40 percent of the gross domestic
Respected Economist Fears Trump's Economic Plans Could Destroy the Markets
Nouriel Roubini is a professor at the Stern School of Business at New York University. Roubini has worked for the World Bank, the U.S. Federal Reserve and the International …show more content…
He has threatened companies that move manufacturing operations outside of the United States with substantial levies to import their foreign-made products back into the country. He has publicly accused numerous corporations of price gouging, and his restrictions on immigration are making it more difficult for companies to attract talent, particularly in the technology industries.
Roubini Feels Trump's Stance on Trade Could Harm the Economy
Roubini is concerned that Trump's tough stance on trade agreements could result in trade wars that could impact markets and economies around the world. In an opinion piece published by U.S. News in March 2016, Mary Kate Cary argued that trade wars and import tariffs will result in higher prices, increased unemployment and rising inflation, thereby hurting the working class and poor the most. Roubini holds the opinion that the enactment of the Smoot-Hawley Tariff Act in 1930 worsened the Great Depression due to the trade wars that resulted.
Roubini Worries That Trump's Damage-Control Efforts Could Exacerbate …show more content…
In an article posted on RSM.com, economist Joe Brusuelas states that uncertainty about the status and role of the United States in the global economy could create issues that hurt long-term growth. He also expresses an opinion that "significant tax reform" and changes to enhance productivity will be needed for long-term growth to exceed more than about 1.5 percent. Brusuelas notes that Trump plans to reduce taxes on pass-through entities, which account for approximately 95 percent of the firms in the American economy. This would also help the middle market, which employs about 33 percent of the labor force and represent approximately 40 percent of the gross domestic