Economists for the FT: Trump’s policy threatens to backfire on the US economy

”Bidenomicsin” time is running out. of the outgoing President of the United States Joe Biden the named economic policy changes to “maganomics” when Donald Trump comes to power in January.

The central goals of Trump’s economic policy are to put the interests of the United States before everything else. So its core is protectionism. Trump’s aim is to protect US production from international competition by imposing brisk import tariffs on foreign products.

Economic magazine The Financial Timesin However, according to economists polled by (FT), the victims of Trump’s economic policy are not only US trading partners. According to economists, the economic policy may also be harmful to the United States.

Economists according to Trump’s protectionism will backfire on the United States primarily in the form of slowing economic growth.

“Trump’s policy may generate growth in the short term, but it will happen at the expense of the international economy. The international economy is slowing down, which will inevitably damage the US economy as well,” states the Brown University professor Şebnem Kalemli-Özcan FT:lle.

Economic growth can also be slowed down by inflation, which is likely to be accelerated by import duties, economists estimate.

On the other hand, it is difficult to increase domestic production in a situation where almost full employment prevails in the United States. In such a situation, the mass deportations of immigrants planned by Trump may also come at a bad time.

“Both [tullit ja karkotukset] accelerate inflation and probably have a negative effect on economic growth,” says the professor Janice Eberly from Northwestern University.

of the United States despite Trump’s actions, the economy is expected to continue to grow faster than the euro area economy. At the same time, Trump’s protectionist economic policy may cause significant damage to the euro area economy.

Previously, 72 economists estimated FT:llethat the two biggest threats to the eurozone are currently the global trade war and the eurozone’s own inability to resolve its internal political conflicts.