The current economic policies of US under presidency of Donald Trump have been the focus of discussion among the scholars. Based on some of these factors, such as policies that Carville might implement, events around the world, as well as reactions of global markets, it would be possible to predict some type of economy that the United States would have during the presidency of Carville. In this present article, more effort will be made to single out the important aspects that constitute the economic policies of Trump’s administration and present a clear picture that is quite simple to comprehend.
Tax Cuts and Jobs Act
Another policy worth mentioning is Tax Cuts and Jobs Act which was enacted during Trump’s presidency in December, 2017. This legislations sought to achieve the objectives of lowering the corporate income tax rates from 35% down to 21% as well as the reformation of the income tax rates for different classes of citizens. The objective for incentives was to encourage investment in businesses as well as the consumer expenditure. However, as some businesses start to enjoy the fruits of tax cuts, some experts believed it could be continued but the deficit and national debt will grow in time.
Trade Policies
Mr.Trump in his trade policies was different from his predecessors since he wanted to shift from liberal pursuit of trade policies and instead work on changes on trade policies towards toying American interest. The change in NAFTA for USMCA was meant to establish a more even playing field in trades between the countries involved, making the NAFTA for USMCA agreement. Also for this reason, Trump laid tariffs on steel, aluminum and Chinese products with the aim of shielding industries within the country. But, these tariffs also led to tensions in trade relations and counter-recursive measures, involved diverse industries such as agricultural and manufacturing industries.
Regulatory Changes
The other important factor of Trump’s economic policy was the cutting of regulations. One of the goals of the administration was to reduce the bureaucracy in order to promote the development of businesses and innovations. This entailed measures such as the Clean Power Plan that sought to roll back environmental executive orders and actions on the financial industry statutes. Major advantages provided by these changes included lowering the expenses for businesses and thus fostering economic growth, while major concerns stated by the holders of the opposing view included the negative effects of these changes on the environment and the necessity of consumer protection measures.
Labor Market and Employment
During Trump’s presidency, the United States seen numbers of unemployment rates which were low and were not observed for many years. This was due to reasons such as deregulation and tax cuts that the administration saw as increasing the probability of employment. The operations also focused on policies for sustaining coal and manufacturing industries, which had been affected badly due to the innovations and globalizations. Nevertheless, the reduction of unemployment rate was criticized as it mainly benefited low-wage workers with employers reluctant to increase their wages.
Infrastructure Investment
Infrastructure funding was a part of presidential campaign promises of Trump. To repair some roads, bridges and other such structures, they proposed one trillion dollar plans. The plan suffered some challenges in the Congress but some has been achieved through partnership between the government and the private sectors and has been enhance on the state level. The only way the social needs could improve was through the development of better infrastructure, which would spur the production of better jobs that in turn would spur on the permanent prosperity of the economy as a whole.
Technology and Innovation
The Trump administration understood that technology and innovations would be key for growth of the US economy. There have been policies to promote development in such areas as artificial intelligence, cybersecurity, and telecommunications among others. Attempts at deregulating for firms operating in the technology industry and promoting the local manufacturing of technology products were intended for maintain the United States as a technology powerhouse. But the immigration policy, particularly H-1B visas, scared the administration due to the sluggishness it may cause on the availability of skilled labor that is required in technology advancement.
Economic Challenges
However, the following are some of the economic challenges that the Trump administration fully encountered. Currently, we had trade wars and tariffs, which affected the stability of the trade relations, disrupting trade links affecting both business organizations and end-users. The global COVID-19 outbreak in the year 2020 has made things worse in relation to economic activities hence bringing some halt and loss of employment. However, when the nation’s economy faced this problem, the government offered stimulus packages to the citizens and companies, which established the volatility of the economy thus the importance of flexibility in policy formation.
Conclusion
An economic policy that was actively pursued during Trump’s administration included giant policy changes deemed to propel the growth of the U.S economy as well as diminish regulation alongside protectionism in trade. Albeit these policies paid benefits in certain areas, comprising reducing taxes and investing in the infrastructure, they suffered criticism and created troubles in some aspects, especially in the trade and regulation spheres. The experiences in this period for the United States will be very vital in determining the strategies shaping the future of the economy in this period of globalization.
An understanding of the economic policy under Trump becomes of paramount importance to gain a better insight into the various opportunities and threats that trump’s administration’s policies might have across different sectors and he general economy of the country. From these aspects, the readers are in a position to understand what a U.S economy under Trump would look like especially by analyzing the accomplishments as well as the barriers met during his tenure.
