Governments hold vital assets needed to sustain any healthy economy. There isn’t any successful countries without laws, and regulations that support a “free market”-meaning prices are decided by suppliers. However, these aren’t truly “free” but somewhere in the middle because without government interference monopoly’s and other negative influences on the economic infrastructure. That’s why it’s important to keep up with politics because representative can propose bills that can benefit the economy. Recently, Trump has established a new tax plan which will affect the economy in that it’ll send it in a expansionary motion.
This graph depicts the effect of Trump’s plan made on the economy. Programs like Obama-Care has also bid cut, and demolished which adds more to the federal budget. These economic decisions are beneficial because they’ll lead to interest rates lowering. This aids with small business, and the working class by making it easier to take out loans. The actions of Trump’s party boosted his support but these were reversed by bad press about recent scandals. Also, decisions made with foreign relations have increase the tension in middle east causing friction that’ll result in conflict. These can lead to economic downfall into a trough in where consumers have less money, and employers are forced to cut people leading to increase in unemployment. Lastly, Trump Tax plan is good for the economy while his other decisions aren’t as good.