The inauguration of a new government in Washington raises numerous questions about the US economy for 2017, mainly derived from some of the President elect’s campaign promises. True, the private sector has welcomed some of these promises, such as tax cuts, less regulation and more infrastructure spending.
3 questions about the US economy for 2017
“The private sector has welcomed some Tump’s promises, such as tax cuts, less regulation and more infrastructure spending. By contrast, some protectionist promises generate concern, such as to dismantle free trade agreements.”
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Despite a near universal desire for an end to Venezuela’s manmade disaster, sending in U.S forces to take out the Maduro regime would be counter-productive. It should be categorically rejected by interim president Juan Guaidó, not to mention the Trump administration.
The firing of undocumented workers at Trump's golf clubs just shows how the practice of employing immigrants without legal work papers is much more common than we might imagine. Such is life in the United States.
The Trump administration should be wary of fueling fake news predictions about an imminent American invasion which unrealistically raises expectations about Maduro's removal.
At some point we will have to accept the fact that the border between Mexico and the United States is nothing more than an invention.
The United States has had a major role in the evolving drama of the fight for democracy in Venezuela and Nicaragua. And so far, it’s been surprisingly coordinated, a veritable model of multilateralism.
Has the Maduro regime reached breaking point? It remains hard to say, but tomorrow is another - more hopeful - day for the restoration of democracy in the South American nation.
It’s impossible to get into Trump’s head but what comes out of his mouth are racist remarks. But, saddest of all are the millions who tolerate his views, cheer him on and emulate his behavior.
The time is well past due for the U.S. government to conduct a thorough review of leaders and their senior colleagues before they leave office to determine if they merit visas.
By contrast, some protectionist promises generate concern, such as to dismantle free trade agreements, or to impose tariffs on products of companies that invest abroad. Additionally, in sectors such as agriculture, hospitality and entertainment there is concern about the promise to deport millions of undocumented workers.
Given the fact that the Republican Party now controls both Congress and the White House, the first question is if the Congressional Republican leadership will support this ambitious agenda, because it contains some elements which contradict several traditional Republican precepts.
The next question is how the monetary policy stance will adapt to the new context, if it is true that there will be a less austere fiscal policy. After all, the economy is growing moderately, it is close to full employment and inflationary expectations are rising. Last December, the federal funds rate increased by a quarter of a percentage point, anticipating more increases for this year.
The last question has to do with oil prices. It remains to be seen if the production cuts, agreed last year by the Organization of Petroleum Exporting Countries and other non members, will keep crude prices stable at around US $50 per barrel.
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