U.S. Financial Future Under President Trump

By: Nash Bowen, 1L

Staff Writer

 

Image of Trump badly photoshopped over floating binary numbers

It is still not clear how the stock market will react during Trump’s tenure. | Source: http://app.hedgeye.com

Throughout the heat of this past election, disagreements ran wild, and hesitation was at an all time high to believe anything said or tweeted by those on the other side of the aisle.There was one thing that most Americans could agree on: the financial mastery that President Trump had attained throughout his life. He created and ran businesses most of his life, making him one of the richest men in America. He built and owns some of the most iconic and well-known hotels, casinos, and golf courses in the country. The majority of American people know and recognize his name and his brand. While many of his opponents tend to emphasize the fact that Trump came from a rich background and was given a trust fund, which provided the starting cash for many of his future companies, no one can deny that the man has one of the most business-savvy minds in our country’s history.

DOW Jones Index

The recent DOW Jones Index (Delayed Price) in all its bitter glory. | Source: http://www.reuters.com

Some of the students, including myself, have finance degrees and experience in the financial sector, and many such students are following with interest the effect President Trump is having on the economy. Mike Lam, a 1L who holds a minor in economics and worked for approximately four years as a hedge fund administrator and in the financial division of a telecom company, explains, “In terms of overall GDP growth, it depends on Trump’s promises. Obviously, stock market prices have rallied due to the promises that he’s made to reduce corporate taxes, reduce income taxes. Those will probably increase GDP over the long term, but if you look at the short term, the markets seem to be declining because it’s been over 100 days without anything resulting from all of his promises.
His proposed health care act probably has something to do with this as well, as it may or may not get through Congress. If everything goes according to plan, of course GDP should rise.” When asked about whether President Trump’s domestic or foreign policy will produce longstanding changes on our nation’s economy, he suggested, “It is hard to say, he is definitely going for a domestic play, it sounds like. Assuming that we can stay competitive with pricing, the increase in jobs brought back to America should help our economy.”
Lauren Bennett, a 1L who majored in finance and marketing at the University of South Carolina, explains “The GDP rise/decline is a hard prediction to make. With his business background, there’s potential for it to go up, as he’s knowledgeable on economics, finance, and things other like that. But he’s also very unpredictable, so the market will likely reflect that unpredictability.”
Regardless of whether you despise President Trump, see him as the country’s savior, or fall somewhere in between those two extremes, it is clear Americans are lucky enough to have a President with the obvious know-how to create a plan to get our economy back on track. Whether that plan will work or not, we will just have to see.

Categories: Opinions & Editorials