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What we are observing now, for example, is that the Latin American MERCOSUR may reach an agreement with Europe. These fragmented regional trade unions will start absorbing the effects that previously belonged to the World Trade Organization. It is very likely that the World Trade Organization will cease to exist, or the United States will withdraw from it.
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How will the Trump administration address this? The issue of the national debt, for example, clearly won’t be resolved by this administration. On the contrary, the debt will grow, and this might become a topic for the next administration.
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We can say with great confidence that taxes will remain low, and the debt will increase significantly in four years. In other words, we will have a substantially larger national debt. This is an issue the next president will have to address, and it will likely be a major debate in the next election. In four years, a significant increase in the U.S. national debt is expected.
#USA #Economy