The Economist interviews President Trump and spots the keyword *reciprocity* from trade to taxation.

Amy Hamilton

2017-07-01 08:40:00 Sat ET

The Economist interviews President Donald Trump and spots the keyword *reciprocity* in many aspects of Trumponomics from trade and taxation to infrastructure and financial deregulation.

The New Keynesian expression of *priming the pump* can lead to greater economic growth with some fiscal deficit at least in the short run. According to Treasury Secretary Steve Mnuchin, this additional economic growth can raise at least $2 trillion in tax revenue over the next decade. Also, the indefinite Trump tax holiday serves as a clear incentive for U.S. multinational corporations to repatriate offshore cash from tax havens up to $350 billion per year to invest in American job creation, manufacturing automation, technological innovation, and superior service provision.

In contrast to the core crux of Glass-Steagall Act, Trump and Mnuchin cannot envision breaking up the big banks that currently enjoy expansive economies of scale and scope. Post-Dodd-Frank deregulation provides an opportunity for bank stocks to outperform relative to the long-term average stock market P/E ratio of 15x to 16x.

While tax cuts trump trade, these tidal traces of Trumponomics shine fresh light on the new supply-side U.S. macroeconomic policy agenda in the Republican administration.

 


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

Strategic managers envision lofty purposes to enjoy incremental consistent progress over time.

Jonah Whanau

2020-10-06 09:31:00 Tuesday ET

Strategic managers envision lofty purposes to enjoy incremental consistent progress over time.

Strategic managers envision lofty purposes to enjoy incremental consistent progress over time. Allison Rimm (2015)   The joy of strategy: a bu

+See More

Chicago financial economist Raghuram Rajan views communities as the third pillar of liberal democracy.

Jonah Whanau

2019-02-25 12:41:00 Monday ET

Chicago financial economist Raghuram Rajan views communities as the third pillar of liberal democracy.

Chicago financial economist Raghuram Rajan views communities as the third pillar of liberal democracy in addition to open markets and states. Rajan suggests

+See More

Paulson, Geithner, and Bernanke warn that people seem to have forgotten the lessons of the global financial crisis from 2008 to 2009.

Daphne Basel

2018-07-17 08:35:00 Tuesday ET

Paulson, Geithner, and Bernanke warn that people seem to have forgotten the lessons of the global financial crisis from 2008 to 2009.

Henry Paulson and Timothy Geithner (former Treasury heads) and Ben Bernanke (former Fed chairman) warn that people seem to have forgotten the lessons of the

+See More

Elizabeth Warren warns of Trump financial reforms that shake up the 5 key pillars of bank regulation.

Dan Rochefort

2017-11-19 08:37:00 Sunday ET

Elizabeth Warren warns of Trump financial reforms that shake up the 5 key pillars of bank regulation.

In 2000, a former law professor at Harvard proposed establishing the Financial Product Safety Commission in order to protect consumer rights in the provisio

+See More

The modern world's most powerful nations, America and China, stumble into a Thucydides trap.

Fiona Sydney

2018-05-29 11:40:00 Tuesday ET

The modern world's most powerful nations, America and China, stumble into a Thucydides trap.

America and China, the modern world's most powerful nations may stumble into a **Thucydides trap** that Harvard professor and political scientist Graham

+See More

Tax policy pluralism for addressing special interests

Monica McNeil

2023-12-08 08:28:00 Friday ET

Tax policy pluralism for addressing special interests

Tax policy pluralism for addressing special interests Economists often praise as pluralism the interplay of special interest groups in public policy. In

+See More