After Trump was voted in as the President-elect, it remains to be seen whether most of his economic policies are tenable.
He promised to create 25 million jobs but failed to provide any details on how he was going to achieve this. There were other sentiments expressed, seen as thinly veiled attacks on America’s traditional allies. Mr Trump took a rather abrasive approach, saying that he would fund part of his economic policy by requiring other nations to shoulder the cost of any military assistance from the US.
According to Trump, the US has been spending billions of dollars defending other nations that do little to reciprocate. Some of the economic behemoths, as he called them, that continue to receive military assistance from the US include; Japan, Saudi Arabia, Germany and South Korea. The broad economic policy that has been proposed leaves a lot to be desired. Essentially, Trump could have been using random figures during the campaign period to whip up emotions among the voters against Hillary Clinton. Economic experts and observers continue to tear apart some of Trump’s economic policy reforms which are meant to transform America at a time when the nation is bracing itself for turbulent times.
To give credit where it’s due, Trump may indeed have effective strategic reforms for the nation, but the problem is the way he keeps contradicting himself and quoting unrealistic figures. The President-elect has promised to create 25 million jobs and grow the economy by 3.5 per cent annually. However, any major policy changes could curtail the developments made by the Obama administration. According to the US Bureau of Labor Statistics, the Obama administration oversaw 2.5 million new jobs created annually at a time when Trump was critical of, among other things, domestic taxes and regulatory policies.
Of great concern to many people is the fact that Trump’s overall economic plan could start a trade war and shave the US economic forecast by a great margin in less than five years. The proposal to deport millions of illegal immigrants could lead to a major labour supply shortage and further slow the US economy against the backdrop of strained economic ties with other nations. Based on what Trump has said in the past, the policy implementation process could lead to a substantial trade fallout between the US and nations such as China, Mexico and South Korea.
Despite his inconsistencies, Trump continues to cast himself as championing the rights of the working class — a situation that might explain why so many of them voted for him. The problem is that all his policies have an undertone of the heydays when the American steel, auto and coal mining industries were the main driving forces behind the economy. The current demographics have shifted against these traditional industries though, and America will have to tread carefully to avoid being thrown into another era of the Great Depression.