Clinton means continuity for US economy, Trump the unknown

washington — On taxes, public spending and protectionism the two candidates for the White House are diametrically opposed: Hillary Clinton represents continuity while Donald Trump seduces or frightens with his radical proposals.

But while many economists are alarmed by the threat Trump poses to American prosperity, there is no shortage of small business owners and investors who believe the Republican candidate’s plans would benefit the economy.

With polls showing the candidates are neck-and-neck just days before Tuesday’s election, the race could be summed up as “Wall Street is pro-Clinton, Main Street is pro-Trump,” said Steve Odland, of the Committee for Economic Development, a non-partisan, business-led economic policy group.

But even Wall Street is somewhat ambivalent. A survey conducted by the CNBC network last week with 50 economists and Wall Street par-

Trump is worrying the academic world: no less than 370 economists, including several Nobel Prize winners, signed an open letter in the appealing to voters to “choose another candidate”, saying Trump spreads disinformation and promotes magical thinking —

Wall Street Journal Bloomberg ticipants showed 82 per cent think Clinton will win, but 46 per cent feel Trump would be better for the economy, compared to 39 per cent favoring Clinton. Another survey conducted in October by the Pepperdine/ Graziadio Business School in Los Angeles with 1,353 small businesses across the country, shows a majority of employers prefer Trump due to his positions on health insurance (55 per cent to 45 per cent for Clinton), as well as on taxes (66 per cent to 34 per cent) and trade (55 per cent to 45 per cent). Trump’s economic plan aims to revive economic activity through deregulation.

He promises to achieve 3.5-4 per cent growth — compared to 1.8 per cent projected for 2016 — by cutting the corporate tax rate to 15 per cent from 35 per cent, and lowering the income tax rate for wealthy taxpayers — the highest bracket would drop to 33 per cent from 39.6 per cent. The impact would be a sharp increase in the budget deficit. Trump also has promised to renegotiate US trade agreements, repeal the “Obamacare” health insurance program, and erect a wall on the US-Mexico border to prevent illegal immigration.

In contrast, Clinton would mostly stick to President Barack Obama’s economic path. The Democratic candidate’s plan includes raising taxes of the richest taxpayers, increasing the federal minimum wage, providing free local universities for the less affluent, and reforming Obamacare. Her plan also would widen the deficit but to a lesser extent.

Trump is worrying the academic world: no less than 370 economists, including several Nobel Prize winners, signed an open letter in the Wall Street Journal appealing to voters to “choose another candidate”, saying Trump spreads disinformation and “promotes magical thinking.” — AFP