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The dollar is going up because of the prospect of a lower corporate tax rate and increased infrastructure spending. The first means companies will have more mot
by grigjd3 10y ago
The dollar is going up because of the prospect of a lower corporate tax rate and increased infrastructure spending. The first means companies will have more motivation to bring profits into the United States and the second is believed to lead to investment (though China is an example that shows this can be taken too far). As to whether this will improve the economy, I have serious doubts that US presidents have much ability to impact the economy barring very extreme measures, and those measures generally do damage, not good.
- Pigo 10y agoI completely understand people's over-estimating the power of President. They do have an ever widening ability to declare war without Congress, but they don't control everything.
- dpark 10y agoRepublicans will control the presidency and both houses of congress for at least two years. They can potentially push a lot through in that time, especially if democrats don't want to take on the mantle of "the party of no" and filibuster endlessly in the Senate.
- grigjd3 10y agoI have my doubts as to what can be accomplished with only 51 Senators. Just like with the Democrats in 2008, the Republicans are not as monolithic as they would like you to believe. They face reelection as much as anyone and if they start massive tax cuts for corporations and the wealthy, but obviously won't be able to bring back a manufacturing economy, then I think they'll be facing a tough situation in 2018.