
- Mar 1, 2014
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The cost of some of Donald Trump's election promises are beginning to be spelled out across the US. If Trump engages in a trade war with China and Mexico he will stimulate US manufacturing but by imposing tariffs of up to 50% on Chinese goods the cost of most manufactured items sold on the US market will increase thus putting pressure on inflation. As inflation increases pressure will be exerted on the Fed to increase interest rates. Maybe Trump has a way to get US workers to work for half pay in order to maintain parity with the cost of imported Chinese goods?
In addition Trump's promise to deport all illegal immigrants is now estimated to cost 88 billion USD across a single year. Not only will the US taxpayer carry that cost but the semi skilled low paid work force will suddenly disappear thus exerting more upward pressure on prices.
Judging by his election promises Trump has learned nothing from his previous four years in office and that is the worry not only for the US but for the rest of the world.
In addition Trump's promise to deport all illegal immigrants is now estimated to cost 88 billion USD across a single year. Not only will the US taxpayer carry that cost but the semi skilled low paid work force will suddenly disappear thus exerting more upward pressure on prices.
Judging by his election promises Trump has learned nothing from his previous four years in office and that is the worry not only for the US but for the rest of the world.