Tyler Schipper, associate professor of economics at the University of St. Thomas College of Arts and Sciences, recently spoke with Quartz about the economic impact of president-elect Donald Trump’s proposed tariffs and tax cuts.
From the story:
It’s the question everyone is asking: What happens now? Donald Trump is on his way to the White House, and by January, he’ll have a team in place to begin implementing the economic policy he’s been touting for months: tariffs on all imports, lower corporate tax rates, extending his 2017 tax cuts, reducing regulation of cryptocurrencies and banks, ending taxes on tips and Social Security, and possibly eliminating income and payroll taxes.
Trump says all this would end inflation, boost manufacturing and employment, and lower the cost of food and housing. But that has been analyzed and dismissed by almost every economist and trade group in the country to look at it. ...
All this spells trouble for the economy, and particularly for homebuyers, said Tyler Schipper, an associate professor of economics at the University of St. Thomas in St. Paul, Minnesota.
“While the stock market has generally been up (with notable exceptions related to renewable energy), other financial markets are reflecting concerns,” Schipper noted in an email. He pointed out that the yield on 10-year Treasury bonds (how much the government pays to borrow money) rose with Trump’s standing in the polls and spiked following his election. This, he said, reflects two related calculations. “First, by estimates across the political spectrum, the Trump agenda will increase the national debt and require vast amounts of additional borrowing.”
