Tuesday, June 21, 2016

TRUMPS Economic Plan would implode the Economy


Donald Trump’s economic proposals would throw America into a deep recession, according to a Moody’s Analytics team led by a former adviser to Sen. John McCain’s 2008 presidential campaign. If cut back by Congress, Moody's said the economy would still face stagnation for all except the richest households.

The Moody’s team looked at three scenarios based on Trump’s proposals on taxes, spending, immigration and trade and assessed the proposals at face value: what he’s telling voters, a “Trump Lite” version, and a scenario where a GOP-majority Congress further limited the proposals by only paying for them with other spending cuts.

“The economy will be significantly weaker if Mr. Trump’s economic proposals are adopted,” wrote co-authors Mark Zandi, Chris Lafakis, Dan White and Adam Ozimek.
“Under the scenario in which all of his stated policies become law in the manner proposed, the economy suffers a lengthy recession and is smaller at the end of his four-year term than when he took office," they said. "By the end of his presidency, there are closer to 3.5 million fewer jobs and the unemployment rate rises to as high as 7 percent, compared with below 5 percent today. During Mr. Trump’s presidency, the average American household’s after-inflation income will stagnate, and stock prices and real house values will decline.”

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