Wednesday, October 19, 2016

The Trump Trade Doctrine: A Path to Growth & Budget Balance


 At REALClearPolicy
By Wilbur Ross & Peter Navarro,
This is the second in a series on the majory policy ideas — from Left and Right — that should guide the next presidential administration's agenda. (For the opposing view, see Will Marshall, "Detoxifying the Trade Debate.")

Budget-deficit hawks often insist that the only way to balance the Federal budget is to raise taxes or cut spending. The far smarter path to balance the budget is simply to grow our economy faster.
From 1947 to 2001, the U.S. real gross domestic product grew at an annual rate of 3.5 percent.  Since 2002, that rate has fallen to 1.9 percent — at the cost of millions of jobs and trillions of dollars of additional income and tax revenues.

Donald Trump’s economic plan will restore America’s real GDP growth rate to its historic norm.  It proposes tax cuts, reduced regulation, lower energy costs, and eliminating America’s chronic trade deficit.

Hillary Clinton’s economic plan, by sharp contrast, will further inhibit growth. It proposes higher taxes, more regulation, and additional restrictions on fossil fuels that will significantly raise energy and electricity costs. Clinton will also perpetuate trade policies and trade deals she has helped put in place that have led to chronic trade deficits and reduced economic growth.

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