Presidential Election

It’s the economics of the Presidential Election, not the politics that we should care about

 

The 2016 US Presidential Election is set to be the most defining political contest in years. One might argue that the concerning emergence of Donald Trump as a leading candidate for the race to the White House is the dominant worry, as his policies could jeopardise America’s relationship with the rest of the world. Another view could be that the controversial actions of Hilary Clinton could scupper the clear path set by Obama for the construction of a much desired, peaceful, globalised society. Regardless of who succeeds this November, they will be in control of the world’s most powerful economy, and with economics and politics significantly overlapping disciplines, the economic importance of this outcome is evident.

China’s stuttering in the first quarter of this year, with 7% annual economic growth seen as a difficult target to meet

The US economy remains the largest in nominal terms, with a value of $18.7 trillion. Taking into account the international criticism Donald Trump is facing for his extreme right wing-promises, it is without a shadow of doubt that a victory for the Republican candidate will cause enormous ripples within the global economy. These ripples could be fatal, since the global economy finds itself in a perilous situation, with a dire need to be led by an economic power. China’s stuttering in the first quarter of this year, with 7% annual economic growth seen as a difficult target to meet, has left global growth at a modest level. China’s slowdown has had a consequential effect on its emerging trade partners. Moreover, increased self-sustainability is preventing international firms from capitalising on growing consumer demand, meaning that there seems to be no short-term solution in order to rejuvenate this much needed growth. As a result, the attention is turning towards America to lead.

 

The political concerns from the Presidential Election, however, could tip over notably before the final result, with Trump’s growing success possibly leading to stock markets pre-emptively declining around the world. Should Trump be elected, the markets will take an even more serious blow. On the other hand, a Democrat victory, if Trump is the Republican candidate, will be a major boost for global stock markets, since it would cool fears of political turmoil stemming from Trump’s policies. If Trump were not to win the Republican candidacy race, it would mean that the majority of the uncertainty would be eliminated, safeguarding America’s short-term economic prospects, with markets avoiding major speculation over the result.

 

Fundamentally, Trump’s political lifetime will negatively influence markets while it lives, but the economic implications of the Presidential Election will be of foremost importance. Regardless of the next President’s political ideology, the implementation of the required economic policies will be essential, considering the USA needs to take a prominent role in boosting global growth. Political relations are vital for America as a global power, but if the next President allows America to take a backseat economically, then they risk scarring their status for decades to come.

 

Many were calling for Presidential Election candidate Donal Trump and his ridiculous policies to be banned from the UK. Read the government’s response here.

 

Comments (2)

  • Clearly this is from an economic perspective, not political. Show some respect.

  • Clearly Lyin’ Ted or Crooked Hillary got this biased lyin’ article published. Sounds like something from Little Marco’s AS Politics exam prep! Even Megyn Kelly has more class!

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