President Donald Trump has been in office for quite some time now after having taken the reigns in an unprecedented victory over fierce rival Hillary Clinton a little over two years. My name is Mike Smith and today I am going to break down the Trump era to see just how Americans and the economy are coping with the new faces at the oval office.
Many have moved to Canada?
Trump’s victory in 2016 was swiftly followed by waves of Google searches centered around “moving to Canada” as many who didn’t take too kindly to the new man in charge sought refuge elsewhere. Does this mean that there was an instant flux of people crossing the borders in the aftermath of the November election? Well, I think not. I’ve seen Google records showing the new subject of contention encompassing impeaching a president so it’s safe that people got around to the idea of an enigmatic character in the white house.
Trade deficit is up
Now, on a more serious note, the trade stats don’t look too good. According to figures I obtained from the Bureau of Economic Analysis and the Census Bureau, trade deficit went up by 12% in 2017 compared to the previous year with the trade imbalance with China particularly worrying. So what does this mean for the America people? Well, I expect one of either two scenarios to pan out. One, heightened tariffs and restrictions on imports and the second possibility is that President Trump would turn a blind eye on the matter. The second case is highly unlikely given how the President strongly feels about trade deficits being a direct reflection of economic weakness so the latter scenario is bound to occur.
The Rust Belt Rut
Wisconsin, Michigan, Ohio and Pennsylvania are the four Rust Belt States that undoubtedly tilted the Presidential race in trumps favor yet the economic development in the region has been fairly quiet. While stats deceptively paint a rosy picture of dwindling unemployment rates, labour-force growth has stagnated at a dismal 0.4% which I believe tells the true story of the demographic decline in the job market.
The previous administration saw a remarkable annual improvement in this regard but the current one seems to be going in the opposite direction. Some of the unwanted changes include a 0.4% fall in the deficit-GDP ratio complimented by an aging workforce and not-too-pleasing wage gains. This state of affairs is probably down to the fact that the Republican Congress delivered the largest tax code alteration witnessed in the past three decades. The changes are to be effected over a 10 year period with the total cost amount to $ 1 trillion dollars and Trump says the new implementation will reduce the deficit-GDP ratio by increasing annual GDP growth. I’ve found no studies to substantial this and I think it’s a matter of hopeful optimism meant to quell raised eyebrows.
The current administration in a nutshell
While I believe it’s not being a bad to the President’s campaign in office, it has been far from a flawless one. Scandals have continually rocked the present administration with various controversies, such as Russian’s alleged hacking of US servers, continuing to derail the development agenda. That said, does the future look bright for the American people under the new rule? I’d say the answer to that question is a cautious no.