A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms.
Becky Berkman

2018-11-29 11:33:00 Thu ET

A congressional division between Democrats and Republicans can cause ripple effects on Trump economic reforms. As Democrats have successfully flipped the House of Representatives, Republicans retain a bigger majority in the Senate. Now Democrats represent a key majority of American voters, but Republicans dominate geographic constituents across the U.S. states. The Economist suggests that this division of congressional power can be a recipe for gridlock, poor governance, and eventually, disenchantment with the political system when one chamber of the U.S. legislature garners popular support and the other receives territorial support.

Several economic priorities arise as topical issues for Democrats. First, Democrats can exercise restraint on presidential abuses of power. For instance, Democrats can help ensure that federal agencies such as the Federal Reserve and Treasury should make independent policy decisions with minimal presidential influence and interference. Specifically, the Federal Reserve should continue the current interest rate hike for better inflation containment, monetary expansion, and credit supply growth when the U.S. economy operates near full employment. The U.S. Treasury should help better balance the fiscal budget with at least $2 trillion national debt and about $800 billion annual deficits when the real GDP per capita needs to grow at 3%-4% in order to fill the fiscal void left by U.S. budget and trade deficits.

Second, Democrats can cooperate with the Trump administration and Republican senators on infrastructure, immigration, and health care to appeal to a broad base of American voters. U.S. infrastructure and immigration should be less toxic when Democrats work well with Republicans to approve necessary budget deals for both vital job creation and organic population growth. Also, Democrats can find feasible solutions for the Trump administration to lower drug prices and other medical costs with little disruption to the pharmaceutical industry.

Third, Democrats should refrain from opposing every constructive proposal from the Trump administration. No rational party can abuse its House majority to block sensible and useful public policies. On the economic front, Democrats should see value in antitrust regulation of tech titans such as Amazon, Facebook, and Google etc across e-commerce, social media, and Internet search. Democrats should also recognize the importance of regular macroprudential stress tests for systemically-important banks to better monitor their long-term financial viability and resilience. On balance, Democrats can collaborate with the Trump team and Republicans for better economic governance as both parties seek and concoct bipartisan solutions, middle grounds, and common interests.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
American parents often worry about money and upward mobility for their children.
Becky Berkman

2019-01-03 10:38:00 Thursday ET

American parents often worry about money and upward mobility for their children.

American parents often worry about money and upward mobility for their children. A recent New York Times survey suggests that nowadays American parents spen

+See More
The U.S. Treasury yield curve inverts for the first time since the Global Financial Crisis.
Apple Boston

2019-04-09 11:29:00 Tuesday ET

The U.S. Treasury yield curve inverts for the first time since the Global Financial Crisis.

The U.S. Treasury yield curve inverts for the first time since the Global Financial Crisis. The key term spread between the 10-year and 3-month U.S. Treasur

+See More
A brief biography of Andy Yeh
Andy Yeh Alpha

2019-12-31 17:44:00 Tuesday ET

A brief biography of Andy Yeh

A brief biography of Andy Yeh Andy Yeh is responsible for ensuring maximum sustainable member growth within the Andy Yeh Alpha (AYA) fintech network pla

+See More
Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.
Apple Boston

2020-05-21 11:30:00 Thursday ET

Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.

Most blue-ocean strategists shift fundamental focus from current competitors to alternative non-customers with new market space. W. Chan Kim and Renee Ma

+See More
Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2020.
Andy Yeh Alpha

2020-02-02 10:31:00 Sunday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2020.

Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implement

+See More
The Trump administration mulls over antitrust actions against Amazon, Facebook, and Google.
Monica McNeil

2018-11-19 09:38:00 Monday ET

The Trump administration mulls over antitrust actions against Amazon, Facebook, and Google.

The Trump administration mulls over antitrust actions against Amazon, Facebook, and Google. President Trump indicates that the $5 billion fine against Googl

+See More