‘Let’s Make America Great Again’ is the famous slogan that Donald Trump used in his election campaign. And this line not only worked out in 2016; but it seems like that it’s going to work in the upcoming elections as according to a popular bitcoin prediction market, Trump will win the next elections. Presidency of Trump has been a debatable issue all across the globe. His performance as a President has been evaluated from the Social, Political and Economic point of views. Since the polls have come from the bitcoin prediction market, it becomes necessary to analyze the economic changes during the regime of Donald Trump.
Let’s begin from the day he won the elections, there was a sudden hike of 3% in the bitcoin price, and it jumped to a new high of $738. Even if this was coincident, it acted as an omen of financial prosperity. America being the largest and the strongest economy of the world gives American Dollar achieve a dominating role in the World’s economy. Unfortunately, Bitcoin is also following the U.S. dollar, rather than the contrary happening.
Trump’s Ideas and Policies
As the President of the United States, Trump has focused on America as an individual country, not America as the World’s leading Superpower. Exhibiting his competence of a businessman, he has mainly focused on financial issues and has introduced policies that cater to problems within America. This is what makes the voters favor him. Earlier, he won people with his campaign, and now he is winning hearts with his policies which primarily incline towards his potential voters. People believed his words in the elections of 2016, now they have eye-witnessed his work. This lays the foundation of Faith in Trump and reasons why 78% of people wish to see him as the President in 2020.
Here are the reasons why Donald Trump has a considerable chance to get re-elected:
#Reason1: Curbing the problem of Unemployment
Trump signed “Buy American, Hire American” executive order in April 2017. This order restricts H-1B visa applicants and makes them suffer in the current immigration system. His motive is to provide jobs to the Americans before the immigrants. His immigration policies majorly focus on blocking illegal immigration, especially those who have criminal records.
Due to this scheme, the rate of unemployment in America has reached a new low of 4%. The number of jobs introduced has been 2.06 million and 1.89 million (till June 2018) in the year 2016 and 2018 respectively. Along with this, 174k manufacturing jobs have been added. Due to this, many companies have complained about facing difficulty in finding people with the right skills.
#Reason2: The increase in GDP
The GDP of the U.S. has reached 4.2%. It is because of the lower tax scheme and other government outlays. These have pushed growth above potential. Trump himself claimed, “We unleashed an economic miracle by signing the biggest tax cuts and reforms.” Some economists believe that the changes will not provide long-term growth to the economy. They claimed this growth to be a temporary one.
Some critics assert that these developments do not come from the efforts of the current president, but the layout set by the previous president, Barack Obama. Trump is continuing a legacy, which is all! He has inherited an economy that has bridged a long way toward healing.
He is favoring the economy by consistently following the pattern of stagnant growth and not putting it into a ditch.
#Reason3: Trade Policy of Mercantilism
The trading policies of Trump promote Mercantilism. Mercantilism is the form of economic nationalism which follows trade policies that protect domestic industries. In order to reduce the U.S. trade deficit, he uses protectionism to save the U.S. from foreign competition. He has announced various tariffs and other policies to solve his purpose. For example, he has announced 25% tariffs on Chinese Goods likes electronics, aerospace and, machinery worth $50 billion. Analysts are not completely in the favor of this step.
Trump has also threatened 70 years of global agreements with his trade policies. His latest decision to enact aluminum and steel tariffs against U.S. allies in Europe and North America has harmed previously agreed-upon trade protocols. The result of this step could be a trade war with Canada, Mexico, and Europe. He has imposed these tariffs in the name of national security. His policies are strictly benefiting Americans making the country lose its credibility in the World Economy and Trade.
The steps taken by Trump have sparked growth; still, many critics claim that the long-term consequences could be harmful to the US economy and the environment. Due to tax cuts, Federal deficit going beyond $1 trillion a year. Predictions are made that Trump’s plan is to increase infrastructure spending, with further rate hikes by the Federal Reserve, will cause the dollar to reach the moon. Consequences might be that the strong dollar will force emerging markets to seek an alternative currency. Justifying the share of ‘Yes’ in the polls, one could infer that the people wishing him to get re-elected are looking into the prosperous short-term benefits. Studying the cause-and-consequences could help to evaluate and develop a thoughtful judgment.