Donald Trump's Impact On The Global Economy

onald trump is the President-elect of the United States and is scheduled to be inaugurated as the 45th President of America on January 20, 2017. Before he takes office of 45th President of America, He has announced his economic plan which is called Trumponomics. A lot of people were shocked by this Trumponomics as Trumponomics is a symbol of Americanism. Donald Trump is aiming to put America first in every aspect in this Trumponomics. This essay outlines the impact of Trumponomics on the global economy in the next four years and evaluation whether the impact is positive or negative.

In the regulation part, it would give a positive impact on global economy in next four years. Donald Trump’s economic plan is aiming to eliminate some of U.S.
The worst thing is that Donald Trump is no longer attaching importance to North American Free Trade Agreement (NAFTA) and Trans-pacific partnership (TPP). He claimed that the American worker’s working standard and environment standard would decrease if America signed the TPP. He also claimed that NAFTA was the single worst trade deal ever approved in the U.S in a 60 Minutes interview in September 2015. Donald Trump great desires to use every tools under American and international law to end the unfair trades. Donald Trump would impose a value-added tax. Since Donald Trump declared that China is one of the currency manipulator, 45% tariffs or temporary surcharge would be imposed on its exports by Donald Trump. Besides, Donald Trump is going to renegotiate NAFTA or even withdraw it. However, there were 95% supported the notion that on average, U.S. citizens benefited on NAFTA in a 2012 survey of leading economists. Moreover, the 2016 Nobel economics prize winner Harvard University’s Oliver Hart cooperates with Massachusetts Institute of Technology’s Bengt Holmströ for laying the preliminary work for contract theory. Their conclusion was that Trump’s proposals on trade would hurt the world’s largest economy and also extremely inefficient and expensive thing to do so. There is no doubted that Donald Trump want to bring back the massive jobs and the opportunities
As Donald Trump mentioned in his economic plan, Donald trump’s tax plan will greatly simplify the code and reduce the number of brackets from 7 to 3. The income tax of these 3 brackets are 12%, 25% and 33%. Due to changing in the tax brackets, mass number of low-income Americans can pay less income tax. Moreover, Donald Trump’s plan will lower the business tax rate from 35 percent to 15 percent, and cancel the corporate alternative minimum tax. By the Donald Trump and his team estimation, taxpayers will receive a tax cut of $1,818 on average and will increase the economy and grow jobs by almost 2 million under the Trump Plan. As America per capita disposable income increases, the aggregate demand would increase. Therefore, it also enhances the demand of imports, as a result, it can increase the trades among different countries and have a positive impact on the global