President Trump: Domestic Policies--The Economy

Figure 1.--.

A key compment of any presidency is mangement of the economy. President Trump's economic policies enucuated during the campaign included 1) regulatory reform, 2) tax reform, 3) fair trade, and 4) control of the balooning defecit. The goal was economic griwth. And as President he has pursued all three with considerable achievements. The debt problem has remained more elusive. And the economy has benfitted notably with economic grort, falling unemoloyment, job creatiion, tax revenues amd other positive indicators. The different policies, however, are inter-realted. The decisiion to obtain equitable trade relations has adversely affected affected internatiinal trade, especially because of the focus on China. And this has affected the growth rate which was key to economic suucess.

Economic Policies

President Trump's economic policies enucuated during the campaign included 1) regulatory reform, 2) tax reform, 3) fair trade, and 4) control of the balooning defecit. The goal was economic griwth. And as President he has pursued all three with considerable achievements. The debt problem has remained more elusive.

Regulatory reform

Regulatory reform was the easiest of all the nmajor economic steps because much of it could be pursued by simply issuing executive orfders, And this the President did from literally the first few days in office. Observers differ as to the economic impact of the regulatory reform and there is no real way of neasuring, byt some observers believe it nay well be mire imprtant bthan the tax reform.imprtant

Tax reform

Fair trade

National debt

, control of the balooning defecit.

Results

One way of measuring economic results outside the lens of idology are important economic indicators.

Economic Environment

Looking at the data, you ger the impression that Trump and Obama have comparable results or that the Trump economy was just a continuation of the Obama economy, but that would be without considering what President Obama had going for him: 1) Massive costly stimulus programs, 2) the Fed stimulated the economy by lowering interest rates, 3) the Fed pursued stimulative QE programs, and 4) an economy recovering from the 2007-08 recession lows and returning to the mean. The Fed has an enormous impact on the economy. (Any economist will tell you this.) And the Fed really opened the gates to fight the recession. By the time Trump arrived, the Fed had reversed its stimulative policies. And thus the Trump numbers are the economy running on its own with the Fed instead of stimulating the economy was taking actions that restricted growth. Another factor is President Trump taking on China. That is adversely impacted some of the numbers, but something that needed to be done. And something Obama did not do.

Impact

The econmy has for years been seen as the key to winning a presidential election. James Carville phrased in succintly during the Carter years--'Its the economy stupid.' That certainly was the case except in ectrodinary years. Americans adopoted their ideology through the lens of the economy. This may be changing because of the hyper-partisan envirinmbt that has developed. Anericans may be may be viewing the economy through the klens of thrir ideological views.

Sources

Ip, Greg. "It�s not the economy anymore, stupid,' The Wall Street Journal (November 12, 2019).