Donald John Trump, a 71 year old man was born and raised in Queens area of New York. He is now the 45th president of the United States of America. Mr. Trump has really made the waters flow in his direction. Despite of strong criticism on his various statements during his election campaign, he kept on going with a will to get to the most powerful chair of the powerful country in today’s world.
Trump’s journey has just begin practically and all obstacles during his election campaign will seem minor than the one’s he will have to face ahead. All his elections slogans like Muslim ban, wall of USA, Obamacare diffusion, Job creation, bringing industry back to home and many others a like would might be doable for him but those who analyze America deeply and closely call it idealistic to finish such task with a crippling economy.
Why did Industry move out?
As per my understanding of economy and many of you may agree that business run only on a simple formula of minimizing cost and maximizing profits. A US market can only give you maximum profits if you get products manufactured from a place where you get economic labor. The other factor was corporate taxes which demotivated companies to operate from the US. There are many industrialists who still run their industry inside the US but in last two decades they have cut down their size because of not meeting the cost of doing business.
As Mr. Trump days before his inauguration started taking CEO’s of various giant companies on board as to seek advise from them but these CEO’s can not go against the feasibility of their own company, they can not ignore merit in job placement, if they do so will not only harm their profit figure but will also question their own capabilities of being in a market of high competition. If the President gives relaxations in the corporate Tax then it will effect the government collection badly. Here the President and his team will have to show their financial management expertise.
The wall of USA:
During the election campaign Mr. Trump focused on the illegal immigrants majorly entering US from Mexican Border which consist of 62.5 miles (100 kilometers). He has spoke about a wall to control huge undocumented entrants but economically it seems impossible to build a wall on such a long border. There might be some points where a wall can be built. He was also seen saying that through such construction a number of new jobs will be created. It simply looks like Keynesian theory of economics in which J. M Kenyes explained to create jobs which was later considered non applicable example in a real time economy.
If Mr. Trump plans to facilitate industries through tax relaxations then the government may not have enough funds for such infrastructure, leading to more debt burden on US economy to fulfil President’s promise to his voters.
As we all know that world is seriously infected with terrorism since 9/11 and US despite of many efforts to keep it out of the American borders still faces threats of terrorism but the word Muslim Ban is highly criticized by the people even in the Republicans. America can only win its war against terrorism with the support of Muslim world specially its long term allies like Saudi Arabia and others. If the President goes for such action that will really hamper US relations with Muslim countries. It also contradicts with US constitution to isolate a community which contributes equally in the development of the country. The incidents of terrorism are a reality but dealing with such incidents in way that peaceful citizens are put in the same row of terrorists will not be digested by the US.
Mr. Trump has to deal with ISIS and Syrian issue as Russia is gaining back it strong hold in the middle east and south Asia. US will never want Russia to influence its old allies in the changing world scenario. China Pakistan Economic Corridor will also be an issue of concern for Mr. Trump and his team.
Mr. Trump on his first day has issued an executive order against Obama Care but has also tried to replace it smoothly. At one side it gives insurance companies a fair chance to play in the open market on the other side the people who went for Obama care are again going to be disturbed through the changes.
No matter, what a successful national capitalist Mr. Trump is on the driving seat of the united states of America with no political background or experience other than forming his own party in the past and letting it go after.