Wednesday 9 November 2016

Donald Trump sweeps to victory in a landmark US presidential election

Possibly the biggest upsets in recent US political history, Donald J. Trump overcame his seasoned Democratic opponent Hillary Clinton to seal his fate in becoming the 45th President of the United States of America. The property tycoon's critics stood perplexed as the results continued to pour in and the likelihood of a Trump presidency transitioned from impossible into a reality.

In a strong wielded message to the political establishment, Trump supporters have shaken the core of American politics by upending the promises made by those in office who fail to deliver and positioned themselves towards a grouping that resonates closely to their grievance in relations to the management of the economy.
But what does Trump bring to the table?

The biggest issue is uncertainty in policy having endured through a number of blunders where his opinion has contradicted a previously stated view on the same topic. This type of political inexperience leads markets to believe his "bulldozing" approach to solving problems will likely be met with stiff resistance from both the Senate and House of Congress even though the Republican party has comfortably secured a major in both.

A political show down between the US president and opponents in his own party won't bode well for confidence and could hurt future prospects.

Trump did however express an intention to boost infrastructure spend in his acceptance speech, an issue that's been driven on debate by his own party over a number of years. A boost in this sector of the economy could translate into real job creation and an expansion in economic activity.

However Trump's lack of a foreign policy and threats to renegotiating or scrapping existing trade agreements with long term partners has driven fear that his policies could throw world trade into disarray. This type of reaction is to be expected considering the levels of globalisation reached through progressive policies aimed at integrating countries closer to each other.

Protection of US goods and services will be high on the agenda for Trump if he wants to re-establish the manufacturing muscle his nation once boasted that has subsequently been taken away by the likes of China and many other nations offering cheap labour.

Although the US can't offer cheap labour it can find efficiency which will allow it to compete against these alternative products and services imported from abroad on top of the benefit of providing employment to millions of US citizens seeking income.  

In concluding inasmuch as the height of fears have been raised I believe Trump is likely to have access to some of the brightest minds to help him implement his plans but we'll have to wait to see who he brings on board when he enters the White House on the 20th January 2017 to be able to make a full assessment of the situation.

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