D. Trumps Economic Model: Results and Prospects

163
DOI: 10.20542/0131-2227-2020-64-7-34-42
V. Supyan (vsupyan@yahoo.com),
Institute for the U.S. and Canadian Studies, Russian Academy of Sciences, 2/3 Khlebnyi Per., Moscow, 121069, Russian Federation

Abstract. The article aims to show theoretical approaches to President Trump’s economic strategy, the major directions of his economic reforms, and their results and contradictions. The author reviews the background of Trump’s economic ideas which have the roots in neoliberal economic schools and economic policy of former President R. Reagan. It is shown that Trump’s economic ideology as well as practices contain a lot of internal contradictions. It is especially true for differences between his domestic quite liberal approach to economic policy which reflected in tax legislation and deregulation policy and protectionist foreign economic strategy which has nothing in common with liberal approach to foreign trade and economic globalization in general. Trump’s economic reforms can be divided into two big groups – domestic economic policy and foreign economic policy. The domestic economic agenda includes very serious tax reform finalized into 2017 new tax legislation (The Tax Cuts and Jobs Act). The most important position of this law was a reduction of corporate taxes to the unified level of 21% for all corporations. Another important direction of economic policy was a policy of deregulation. In accordance with this policy hundreds of government acts issued by previous administration were canceled what allowed to save more than 30 Billion Dollars for only 2 years since 2017. The same time there is a lot of criticism in regards to both major policies on domestic scene – many economists keep saying that the tax reform led primarily to budget deficit increase and that regulatory reform is very inconsistent and not well elaborated. As to the foreign economic policy it raises even more questions. According to many opinions the rising protectionism may be much more harmful for the US economy than beneficial. Also it is very doubtful to have a largescale return of American companies to the US territory promised by President Trump. The current trends of reshoring are very modest. The US Administration also failed to balance the foreign trade which also was one of the most important goals of Trump’s economic agenda. Several other important goals of Trump’s administration were also not achieved. Among them – to cancel Affordable Care Act (“Obamacare”), passed during Mr. Obama presidency, to pass a new immigration law, to start massive infrastructure reform. The author makes a conclusion that despite the economy is still in a pretty good shape the most important goals of Trump’s administration were not achieved or were only partly accomplished. It is clear that political future of D. Trump will significantly depend on economic situation in 2020.

Keywords: economic model, economic concepts and schools, economic strategy, economic reform, budget deficit, foreign trade balance, reaganomics, trumponomics, economic growth, protectionism


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For citation:
Supyan V. D. Trumps Economic Model: Results and Prospects. World Eonomy and International Relations, 2020, vol. 64, no. 7, pp. 34-42. https://doi.org/10.20542/0131-2227-2020-64-7-34-42



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