The policies suggested by Donald Trump could actually destroy growth of the United States
D onald Trump has wanted: Low oil prices; however, a high oil price is positive for the United States, which has become a large oil-producing country; A weak dollar; however, in contemporary economies, the main effect of exchange rate depreciation is a reduction in growth through a worsening of the terms of trade (by increasing the relative price of imports); To tax imported products, which is negative for growth when these products have no domestic substitute produced in the United States, while taxing them disrupts companies’ value chains. The effect of all these three policies suggested by Trump would therefore be to weaken the US economy.