Thursday, July 28, 2016

Trump's Economic Policy In One Sentence

Increase the cost of access to the American market.

Trump will reduce regulations and taxes to make America wealthier, but he will also raise the cost of being outside of the American labor market.

Nothing is stopping Goldman Sachs or Google from moving their HQ overseas. If they can't or won't move overseas, then Mr. Trump is correct: the United States can charge more. The explicit support for Obama and Clinton also tells us American companies are willing to pay more for market access. They are willing to pay higher taxes, and suffer higher regulations.

Mr. Trump's goal is not a rearrangement of wealth in America, a transfer of rich to poor. Instead, he wants to grow the pie much larger, but also keep more at home. Under his policies, corporations will make far more than they would under Clinton.

Yet, most likely companies such as Google and Goldman Sachs, multinationals that are American in name only, will loudly oppose President Trump. Foreign multinationals, such as InBev, the owner of Budweiser, will play ball.

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