SMC Economic Perspectives Questions

User Generated

yrkvf7777

Economics

Santa Monica College

Description

1  What is the main economic issue?

2  How is the economic issue related to the concepts or models that you have learned from this course?

3  What sorts of arguments/opinions have been discussed?

4  Do you agree or disagree with the analyses/opinions? Why?

5  What argument would you, as an economist, make?

LINK: https://www.nytimes.com/2020/01/08/business/economy-recession-economists.html

Explanation & Answer:
4 pages
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Explanation & Answer

Attached.

Running Head: THE PROBLEM WITH TRUMP’S ECONOMIC POLICY

The Problem with Trump’s Economic Policy
Name of student
Professor’s name
Course title
Date

1

THE PROBLEM WITH TRUMP’S ECONOMIC POLICY

2

The main issue being addressed by the article is the problem with the economic policies
being pursued by the Trump administration. President Trump has listed the fact that his
presidency has been characterized by a strong economy as one of his key achievements as he
launches his reelection campaign. Economists, however, disagree with this assertion. This is
because despite the fact that unemployment is at an all-time low in 50 years, the wages are
rising, and economy has experienced a record expansion in President Trump’s tenure; the
foundation of the economy is not strong enough to support these developments. The expansion
has therefore been built on a “potentially shaky foundation of high deficits and low interests
rates” (Tankersley & Smialek, 2020). The upward trajectory could, therefore, eventually have
disastrous results since a downturn seems highly likely. This is due to the fact that trade tensions
are likely to escalate, slowdowns could occur in the United States and other wealthy nations and
“financial disruptions” are possible from “emerging markets like China and India” (Tankersley
& Smialek, 2020). If these risks were to materialize Economists fear that policymakers in the
Trump administration would not be ill-equipped to respond effectively to negative events.
Even though trade tensions between the US have cooled at the moment, they have
escalated in Europe as European nations have started to impose additional taxes on technology
companies largely based in the US. In response, Trump has already threatened tariffs on French
goods. If this trend continues a tariff war between the US and the European Union could result.
The impact of trade tariffs imposed by both...


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