The rhetoric of Donald Trump on the campaign trail was hostile to past trade agreements made by the United States government with other nations. Now that Trump has shocked the world with his victory over Hillary Clinton, he is poised to enact some of his promises, which economic analysts say could bring both economic growth while increasing inflation, and higher interest rates on loans.
The director of the Institute for Economic Competitiveness, Sean Snaith, said that Trump’s unorthodox policies could “knock the U.S. economy out of its low-altitude, low-growth orbit.” He was cautious, however, and wondered allowed, “Or will it knock us down into the atmosphere and a fiery re-entry?”
Predictions by academics found their average belief that Trump will raise the economy’s growth to 2.2% by 2017. They also predicted that inflation will rise to 2.4% by 2018. If these predictions come true it will be the first time since the Great Recession that inflation raised above 2%.
Other economic experts are not as optimistic, because they do not know or fully trust what Trump has said. The chief economist for Manulife Asset Management, Megan Green, said, “Anyone who tells you they absolutely know what will happen under a Trump presidency is probably lying.”
Strong words from Green to be sure, which were also apt. Trump has made a career out of lying and stretching the truth. To believe what he has promised as the gospel, and to build economic models based off of that, without first seeing what he actually enacts, will ultimately lead to individuals making fools of themselves.