Donald John Trump, 45th President of the US, has laid out some major economic policies for making America, what he calls, to be great again. Though he has been already involved in so many controversies, some of the economic policies laid out by him are worthy of appreciation. His economic policies had both positive and negative effects on the economy. In this guide, we’ll discuss some of his popular economic policies and see how it has affected our lives.
- Reduce Government Spending
In order to reduce government spending, Trump had cut down federal employees and promised reductions in the budget. In one hand he reduced the no. of employees for reducing the spending, while on the other hand, he had increased the budget of FY 2018 to $4.094 trillion. If we compare it with the budget of FY 2017, we can notice the increase in the budget. Also, he cut the funding by $10.4 billion of the Education Department. The budget of the Energy Department was cut by $2.2 billion.
- Smart Trade
One of his trade policies is to promote mercantilism. To defend the US industry from competitors, he promotes protectionism. On 2nd September 2017, Trump suggested the deputies withdraw from the trade agreement that was between South Korea and the US. On 16th August 2017, he began renegotiations with Mexico and Canada for NAFTA. The NAFTA or North American Free Trade Agreement is one of the biggest trade agreements of the world. He had threatened that he would hit the Mexican imports by imposing a tariff of 35% and withdraw from NAFTA. For Chinese imports of aerospace, electronics, and machinery, Trump has announced 25 per cent tariffs on 3rd April 2018. He announced 25% tariff on steel and 10% on aluminium, on 1st March 2018.
- Reducing debt
Through the elimination of federal spending, Trump wishes to alleviate the country’s debt. Instead of going for an expensive campaign, he opted for the twitter campaign, demonstrating his ability to reduce the expenditure. Unfortunately, his debt reduction strategy added $5.3 trillion to the existing debt. In 2017, the jobs act and tax cut the income taxes and reduced the rate of corporate tax to 21%. However, this tax cut would add to the government’s debt. Though he promised the growth of the economy by 6%, his plan predicts a growth rate of 3 per cent.
- Send the Immigrants back
His immigration policy focuses on obstructing illegal immigration. In the US, 2-3 million illegal immigrants having criminal records are to be deported. He wants to make sure that first the jobs should be provided to the American workers. However, Silicon Valley CEOs are worried that it might obstruct the visa program. The visas are mostly for computer-related jobs and around 35,000 workers from abroad fill the Silicon valley posts. If in any way, the visa program is threatened, all these companies would lose their employees, and in turn, lose their share in the market.