Analyst Speculates on Economy Under President Trump – RVBusiness – Breaking RV Industry News
WASHINGTON — President-elect Donald Trump won a return to the White House in part by promising big changes in economic policy — more tax cuts, huge tariffs on imports, mass deportations of immigrants working in the United States illegally, according to an Associated Press report.
In some ways, his victory marked a repudiation of President Joe Biden’s economic stewardship and a protest against inflation. It came despite low unemployment and steady growth under the Biden administration.
What lies ahead for the economy under Trump? Paul Ashworth of Capital Economics spoke recently to The Associated Press. The interview has been edited for length and clarity.
Q: What kind of economy is Trump inheriting?
A: It is objectively a strong economy. But that doesn’t mean the man in the street agrees. If you look just at the growth numbers, they’ve been strong, and the unemployment rate’s pretty low. But consumer confidence remains muted. Although the inflation rate has come down, the level of prices remains much higher than it used to be. That was obviously weighing on consumer sentiment.
Q: What will be the economic priorities for Trump?
A: There’s a lot to do on fiscal policy in terms of just extending the original Trump tax cuts, which are due to expire at the end of 2025. The debt outlook is approaching 100% of GDP and is on track to be 120% of GDP within another decade. Extending the expiring tax cuts is about avoiding fiscal tightening, not introducing additional stimulus into the economy. We’re not convinced we’ll see further stimulus.
