Positive And Negative Effects Of The 2016 Presidential Election

What effect will the 2016 US Presidential Election have on the global economy? Will establishment favourite Clinton triumph and restore normalcy to the traditionally trade liberal country? Or will protectionist Trump take control and implement never-before-attempted reforms? Marshall Nickle suggests that Elections have a drastic negative effect on economic growth as a large proportion of worsening happens in the first three quarters of presidencies. With the current uncertainty, many economists expect things to be rough for the next leader of the world’s largest economy. Even in the months leading up in 2016, the US Dollar has seen a depreciation of up to 10% against seemingly weak Asian currencies such as the Japanese Yen and Malaysian Ringgit.

Talks of extreme protectionist measures which go against the American-led ideal of free trade has stroked fear into businesspeople and investors worldwide. On the one hand, Republican candidates talk about dramatically loosening fiscal policy. Trump has argued that he will be able to lower taxes (which is estimated to cost $12 trillion) while eradicating the country’s national debt of $18 trillion within 8 years of presidency. Even among other candidates, Cruz proposes a Simple Flat Tax in which the current elaborate seven-tier plan will collapse into a single 10% bracket. Understandably, the people of the USA and the world are worried about how all these absurd policies will be funded. Statements have already faced backlash by world leaders, such as the Mexico President speaking out against paying for a wall at the US-Mexico