William Seif
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.
I think that there are definitely benefits to new tax plans from the current president and his predecessors. However, I think that it does have something to do more than simply interest rates. However, you are correct and I support your claim of saying that lower interest rates will in fact strengthen the economy because businesses will be more willing to spend money. Looking at tax plans and/or new governmental bills, it seems as if there is a ;large scheme of things that are impacted, including loans, taxes, interest rates, etc. And these fluctuations can change the mindsets of businesses and corporations alike..or, their opinions may be different. There are many different ways that people can look at the GDP fluctuations from one president to the next.
ReplyDeleteI think it is interesting that the included graph shows the GDP growth in the four quarters preceding inauguration, which makes the graph misleading. The GDP change over Trump's name is really during Obama's term, the number above Obama is during Bush's term, etc. Taking quick glances at graphs like these that are designed to be misleading is a prime example of why graphs should receive more scrutiny than they are given.
ReplyDeleteThere is a couple of very important things to note here. First off, the graph you listed is for the quarters leading up to inauguration, meaning that Trump's actions have zero effect on the graphs data. Also, you took a very simplified view to the issue of tax cuts and growth. While I'm not necessarily saying that the tax cuts won't provide growth, the decrease in federal budget from the tax cuts will cause government spending to decrease, inhibiting growth.
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ReplyDeleteWell you get something and you lose something, with this new tax plan, most people might take is as a bad thing because they don't Benefit more from the new plan. But we all know what even with this new plan trump will find away to turn it around so it benefits him and the government. I really like the graph you have chosen for this writing and about how it relates how we have been doing in GDP. Because when Obama was president he was not doing half of the bad things that trump has been saying and doing. So now this is the question will the economy fall or rise form this tax plan?
ReplyDeleteThere are definitely positives to trump's tax plan, but there are people who might not like it because you always have those people who complain about everything. This will help push the economy into the right direction, but if he is affecting things that are outside the U.S. there might be more consequences then we know about because that might not get talked about as much.
ReplyDeleteIt’s cool to look at that graphic and compare the last Presidents and how their GDP was. This is a good statistic to use when comparing presidents, but also good to use when looking at the overall impact Trump has had on the economy. Besides this, it’s good to see that what Trump is cutting is going to benefit us later in the future. Making moves like this are important to our economy because they make it better in the future.
ReplyDeleteIt's cool to be able to compare the last Presidents and how they did with our country's GDP. It's important to be able to see how they both impacted the economy and the impact Trump has made on our economy. It's also cool to see where we will be in the future based on the cuts being made now.
ReplyDeleteThat is a very interesting chart. Its weird to see how presidents varied so highly in how they affected the economy. I would want to see another graph that shows large portions of why the presidents ended up where they were.
ReplyDeleteI think despite whether or not Trump's decisions improve economic growth or not, people will still have opinions on if his decision was the right one or not just because of their bias for or against him from the start. Regardless of the populations opinion on Trump there will be proof in the numbers whether making tax cuts is a good decision or not.
ReplyDeleteI think that the graph was a very good example of the positive things trump has been doing with the economy and while he does take a lot of heat for some of the things he says or does it is clear that his impact on the economy has been very good. Regardless of what the economy started at he has done a great job turning things around and I think it might be hard for some to realize why he does what he does but in the long run they will see that it was the correct decision.
ReplyDeleteI agree with Cameron that this graph depicts what Trump has done for the economy very well and it shows how much good he has done. The sad part of the situation is that no matter what he does for the economy, the general public will always bring in other topics to try and bash him unfortunately. Overall though from an economic point of view he has done lots of good for the country.
ReplyDeleteThe graph used was a great way to compare how Trump is doing and will do to other previous presidents. This graph is easy to understand and useful. Hopefully, Trump's tax cut will allow more employees that could actually use the money. They'll be able to help propel the economy forward because of their increase in income. Hopefully Trump will be able to create or pass a plan that will decrease our yearly deficit.
ReplyDeleteI agree with Matt, the numbers in the graph do not signify Trumps actions. He isn't all that great. Anyways, I am hoping that the tax cuts raise hope for the future and actually help our country. It was interesting to read this article and see where we are currently at with this plan.
ReplyDeleteI agree with Matt that the graph that you used shows the quarters before inauguration. Technically, Trumps data should be associated with Obama and what he was able to do before his second term was over. Trumps plan is interesting and might boost economic growth but we will have to see for ourselves if his plan actually does such a thing.
ReplyDeleteTo actually see if his plan works we will have to wait because it is hard to tell what changes were actually effective in the moment. However Trump's policies weren't actually in effect yet on the graph as he wasn't in office yet. So the 1.93% cannot be attributed to Trump's policies and are the result of previous policies going into effect. Overall we will probably have to wait a longer period of time to see what impact Trump's policies have.
ReplyDeleteWe can't tell what Trump's policies have done so soon after they were made. The GDP increase happened because of policies made by Obama later in his presidency, that have recently begun to have noticeable effect. The tax plan isn't considered good or bad at this point because there hasn't been enough time. These kind of policies take time to cause economic change, as seen when Trump brags about things Obama caused. The increases in GDP are not a result of the new tax plan, and GDP isn't the greatest when it comes to measuring an economy.
ReplyDeleteI think this was very interesting to look through as I feel there are many people who do not agree with the current presidents methods of dealing with social issues. However being an abundantly wealthy man it does not surprise me that he is raising the GDP by saving money in some areas such as Obama care. In addition Trump is growing notorious for his tax implementations on important goods which also shifts the demand to focus domestically again increasing the GDP overall this was an interesting article to read through
ReplyDeleteI don't personally agree that governments determine prices, the people do. That is what makes our economy grow and sustain itself at such a great rate. If a government held prices, then our economy would collapse like the Soviet Union's. But a government CAN set tariffs to sway certain sections of the manufacturing sector to produce certain goods, and build domestic interest in such products.
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