President Trump's election is a moment of national unity.
Democratic elections rarely produce such results. political unity We'll find out after the 2024 election.
Republicans will not only hold the White House, the House of Representatives, and the Senate, but will also control most of the state governments. In a note released Tuesday, Bank of America strategist Jared Woodard noted: This is the sixth time since 1934 A majority of one political party in the state and federal governments.
Add to that a comfortable majority of Republican appointees to the Supreme Court, and this is what we might end up with. An unprecedented moment of national political unity. Perhaps unsurprisingly, despite the fact that Republican candidates were led to victory by growing hope for the future, traditional media outlets have found the election divisive and the Republican campaign in the dark. He continues to portray it as rooted in anger.
We are more confident than before the election that: economic dissatisfaction was one of the main promoters of the election. All the exit polls confirm what the pre-election polls found: the state of the economy. especially inflation— was the issue that mattered most to voters.
President Trump's economic mission
Trump and the Republican Party Mission of new economic policy. This includes fighting inflation, cutting taxes for businesses and individuals, encouraging the maximization of energy production, restoring U.S. manufacturing, securing U.S. borders and restoring democratic control over immigration, and leveraging tariffs to This includes rebalancing trade with other countries. These are not separate obligations, but threads that must be carefully woven together. If we ignore any one of them, we risk wasting this historic opportunity.
scott bessentThe founder of Key Square Capital Management and a front-runner for Donald Trump's Treasury secretary usefully summarized the agenda:three three” By 2028, the goal is to reduce the budget deficit to 3% of gross domestic product, achieve economic growth of 3% and produce 3 million barrels of oil per day.
Scott Bessent speaks at the National Conservative Party Conference in Washington, DC, on July 10, 2024. (DOMINIC GWINN/Middle East Images/AFP via Getty Images)
Of course there are challenges. Bank of America's Woodard points out: Fear of “vigilante solidarity” Or the bond market turmoil could make some Republicans hesitant to fully extend the Tax Cuts and Jobs Act or support President Trump's other tax cuts. Now that a Republican is back in the White House, traditional media and Nobel Prize-winning economists have suddenly turned to the cause of fiscal consolidation, warning that “unsustainable” budget deficits threaten the republic. That would be expected. We're already hearing tweets along these lines from Fed officials, including Chairman Jerome Powell.
The first line of defense against this is to be aware of the following: Not all budget deficits are created equal.. Deficits resulting from extravagant government spending, especially when they are driven by climate change or the DEI agenda, increase demand without increasing supply. That causes inflation. Deficits that encourage investment, such as tax cuts for businesses, boost both sides of the book and generate growth without increasing inflationary pressures.
In other words, growth is the answer to fear of deficits. Deregulation and tariffs are powerful drivers of growth, encouraging domestic investment and employment to increase output and productivity. Blocking the influx of cheap labor will also encourage productivity while easing pressure on food and housing supplies. Adopting maximalist energy production policies, such as reforming bank capital regulations and encouraging fossil fuel financing, lowers inflation and increases output.
“Rising budget deficits and rising tariff costs could both be addressed by increasing GDP through energy maximization, deregulation, and domestication of industry to free up private sector productivity,” Woodard said. points out.
As Ben Parker, a wise man who later becomes the boy's uncle. spidermanThere was a famous teaching that “With great power comes great responsibility.'' The Republican Party, given such power by American voters, should strive to live up to its responsibility to bring about major changes to the economy. If it is not used proactively, voters will certainly be deprived of that power.
