Nothing had been constant in the economy for years. It fluctuates from time to time in response to various factors. The U.S. economy is doing much better now after the most recent recession and business is starting to pick up. As a result, the unemployment rate has reduced and the people have more spending power.
However, you can also see many shops closing down because fewer people frequents the mall anymore when they can do their shopping online. Such an irony, right? Employees will still lose their jobs and crime rates may again increase – as if law and order are not already a major headache right now.
So, we can’t say yet that the economy is in great shape again. Moreover, the controversial policies of President Trump are sure to affect the U.S. economy in a major way.
The budget, the Liberal government’s second since the 2015 election, will land as Ottawa and corporate Canada scramble to assess the risks of possible and unpredictable policy actions from the country’s top trading partner.
There are fears of negative economic fallout for Canada from the decisions of the Trump administration and it’s unclear whether Morneau’s budget will account for the unknowns.
Trump calling cards like a border tax, protectionist policies, corporate and personal tax cuts and a renegotiated North American Free Trade Agreement all pose an economic danger north of the border.
The budget will also follow a series of stronger-than-expected economic indicators in recent weeks. In November, Morneau’s fall fiscal statement predicted a deficit of $25.1 billion this year and a shortfall of $27.8 billion for 2017-18.
“In the wake of the election victory by Trump, a lot of uncertainty was introduced into the economic forecasts,” said Alexander, who participated in Morneau’s Jan. 13 meeting to hear projections from private-sector economists.
Trump’s famous unpredictability means it’s impossible to know for sure the challenges Canada could end up facing, he added.
The economic instability since 2007 persists to be one of the top problems the country faces along with government dissatisfaction, immigration, health care and education issues.
In the latest poll, about one in four Americans (26%) name an economic issue as being the most important problem facing the U.S., while three times as many (75%) list a noneconomic issue. From 2008 to 2012, economic concerns mostly exceeded noneconomic ones.
Even ordinary Americans feel the severity of the economic issues plaguing the country.
Almost one in five Americans (18%) name dissatisfaction with government or poor leadership as the nation’s greatest problem. This is similar to the 19% recorded last month, when it ranked as the top overall problem by a significant margin for the first time since April 2015. Concerns about government rose once Donald Trump took office; many Americans who cite government dissatisfaction as the most important problem mention Trump specifically.
So it appears that Trump and the economy are not a good combination, after all. Yet we are still hopeful that he can indeed deliver his promise of making America great again despite what many would call it a bad start. So, let us all give him the benefit of a doubt. If there is one thing genuine in him, it’s his love for his country.
One industry President Donald Trump focused on intensely during the campaign was U.S. manufacturing. He recently met with manufacturing executives, signaling that he will attempt to follow through on his campaign promises to significantly increase manufacturing jobs. February’s jobs release—and the releases over the next several months—will demonstrate whether the symbolic meetings and soaring rhetoric are translating into progress at an economywide scale.
Let us not forget, though, that it is not only the U.S. economy that has been unstable for years now but that of many other nations too. We must unite and remain vigilant if we truly care for our country and help in any way we can – and that’s by being responsible and law-abiding citizens.