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

Joseph Stiglitz and Andrew Charlton suggest that free trade helps promote better economic development worldwide.

Monica McNeil

2023-07-21 10:30:00 Friday ET

Joseph Stiglitz and Andrew Charlton suggest that free trade helps promote better economic development worldwide.

Joseph Stiglitz and Andrew Charlton suggest that free trade helps promote better economic development worldwide. Joseph Stiglitz and Andrew Charlton (200

+See More

Facebook, Apple, Amazon, Netflix, and Google (FAANG) have been the motor of the S&P 500 stock market index.

Dan Rochefort

2018-06-11 07:44:00 Monday ET

Facebook, Apple, Amazon, Netflix, and Google (FAANG) have been the motor of the S&P 500 stock market index.

Facebook, Apple, Amazon, Netflix, and Google (FAANG) have been the motor of the S&P 500 stock market index. Several economic media commentators contend

+See More

Admitting China to the WTO seems ineffective in imparting economic freedom and democracy to the communist regime.

Dan Rochefort

2018-07-27 10:35:00 Friday ET

Admitting China to the WTO seems ineffective in imparting economic freedom and democracy to the communist regime.

Admitting China to the World Trade Organization (WTO) and other international activities seems ineffective in imparting economic freedom and democracy to th

+See More

Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens and many other drug distributors.

Peter Prince

2018-06-29 11:41:00 Friday ET

Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens and many other drug distributors.

Amazon acquires an Internet pharmacy PillPack in order to better compete with Walgreens Boots Alliance, CVS Health, Rite Aid, and many other drug distributo

+See More

Treasury Secretary Steven Mnuchin indicates that there is a good conceptual trade agreement between China and the U.S. in regard to intellectual property protection and enforcement.

James Campbell

2019-10-05 07:27:00 Saturday ET

Treasury Secretary Steven Mnuchin indicates that there is a good conceptual trade agreement between China and the U.S. in regard to intellectual property protection and enforcement.

Treasury Secretary Steven Mnuchin indicates that there is a good conceptual trade agreement between China and the U.S. in regard to intellectual property pr

+See More

President Trump tweets his key decision to oust State Secretary Rex Tillerson due to intense disagreement over diplomatic affairs.

Fiona Sydney

2018-03-07 07:34:00 Wednesday ET

President Trump tweets his key decision to oust State Secretary Rex Tillerson due to intense disagreement over diplomatic affairs.

President Trump tweets his key decision to oust State Secretary Rex Tillerson after several months of intense disagreement over diplomatic affairs. Trump so

+See More