Economic growth in the U.S. has averaged around 2 per cent per year since the end of the 2008–09 recession—one of the slowest recoveries from a severe economic downturn ever. Donald Trump contends that this rate of growth is simply not good enough for the United States. His administration plans to cut taxes, ramp up spending on infrastructure, get rid of burdensome regulations, and tear up what he says are unfair trade deals. Trump says these measures will lead to sharply higher growth than during the Obama years—closer to 4 per cent over both the short and longer terms.
To date, equity markets have bought into Trump’s argument, soaring since his election victory. However, the path to economic nirvana is fraught with risks. Continue reading this blog by Kip Beckman, Principal Economist, World Outlook here: http://ow.ly/Mrqg307WdYa