De­spite Trump, Trumpo­nomics is work­ing

The Week - - Commentators City - Matthew Lynn

As he ap­proaches the first an­niver­sary of his elec­tion vic­tory, Don­ald Trump is shap­ing up to be one of the most “oafish” US pres­i­dents yet, says Matthew Lynn. “But just be­cause he runs a de­ranged White House,” it doesn’t mean his eco­nomic poli­cies aren’t work­ing. On the con­trary, “Trumpo­nomics” seems to be thriv­ing, and “the re­sults are start­ing to be seen in faster growth”. Suc­cess is down to two key poli­cies. A bon­fire of fed­eral reg­u­la­tions is al­ready un­der way. And Trump has come up with a “bold and pro-busi­ness” plan to re­form the tax sys­tem, which will slash the head­line rate of US cor­po­ra­tion tax to 15% (one of the low­est in the world) while giv­ing US com­pa­nies “less in­cen­tive to stack up cash off­shore”. Even if it is wa­tered down by Congress, the plan is rad­i­cal enough “to make a big dif­fer­ence”. Trump is not wholly re­spon­si­ble for Amer­ica’s im­prov­ing out­look: “he took over an econ­omy in re­spectable shape”. But these poli­cies could have a ma­jor im­pact. “There are still lots of things that may bring Trump down. But the econ­omy won’t be one of them.”

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