The Achilles’ Heel of Trumponomics
The US president-elect's economic strategy is severely flawed: its protectionist bias collides head-on with the imperative of increased US reliance on foreign saving and trade deficits in order to sustain economic growth. A saving-short, protectionist America is a country on a path to nowhere.
NEW HAVEN – Donald Trump’s economic strategy is severely flawed. The US president-elect wants to restore growth via deficit spending in a country with a chronic shortfall of saving. This points to a further compression in national saving, making a widening of an already outsize trade gap all but inevitable.