It’s hard to believe this day is here, but we finally have a new President-elect. Over the next six weeks, as Inauguration Day draws nearer, our country will prepare for this major transfer of power. And whether you’re feeling joyful, ambivalent or distraught, the wheels of business will keep turning. But depending on the economic outlook, there may be an impact on company spending. In the same way that our nation’s collective consciousness affects consumer spending over the holidays, periods of political transition can either spur or rein in business budgets at every level – from small industry to enterprise.
President Barack Obama inherited a tumultuous economy eight years ago when he assumed his role as Commander-in-Chief. But over the course of his tenure, he and his contemporaries in Congress have succeeded in recalibrating and fortifying the economy, especially when it comes to job growth.
In Glassdoor’s most recent Jobs report, Chief Economist Dr. Andrew Chamberlain notes that September signifies 72 straight months of consecutive job gains. With Donald J. Trump slated to become the 45th US President, his vision to create a “booming” economy, that according to his calculations, stands to usher in 25 million new jobs in the decade ahead will hopefully start to take form.
Trump summarizes his plan: “My economic plan rejects the cynicism that says our labor force will keep declining, that our jobs will keep leaving, and that our economy can never grow as it did once before. . . If we lower our taxes, remove destructive regulations, unleash the vast treasure of American energy, and negotiate trade deals that put America First, then there is no limit to the number of jobs we can create and the amount of prosperity we can unleash.”
Here’s how Mr. Trump aims to achieve this remarkable job growth:
Mr. Trump’s tax plan is to simplify and reduce taxes for all filing entities. He will set out to streamline the number of tax brackets, reducing it from seven to three. All businesses will be taxed at a fixed 15%. In his estimation, this will make it more cost-effective for companies to do business in the U.S. He proposes that this will encourage business to operate in the U.S. and bring businesses back into the country.
Mr. Trump estimates that his across-the-board tax cuts will grow the economy and bolster job growth. In a speech on jobs that he delivered at the New York Economic Club, Mr. Trump stated, “One of our greatest job creation measures is going to be our 15% business tax rate – down from the current 35% rate, a reduction of more than 40 percent [sic]. An explosion of new business and new jobs will be created. It will be amazing to watch.”
Mr. Trump’s plan seeks to fortify the economy and create jobs by initiating an “energy revolution” and securing the U.S.’s place as “the world’s dominant leader in energy production.” Mr. Trump’s plan aims to bolster domestic coal, oil and gas production. To pave the way for this work, the Trump administration says it will first lift existing restrictions like the Environmental Protection Agency’s (EPA)’s Clean Power Plan.
The Trump plan projects that this measure will add 500,000 new jobs annually and over the next seven years will lead to an increase in wages of $30 billion. A Trump administration would also support research that furthers energy technology.
“An America-first trade policy”
Mr. Trump is interested in ensuring that trade deals are strategic, sound and that their core aim is to benefit American interests and American workers. “Donald Trump will appoint the toughest and smartest trade negotiators to fight on behalf of American workers and direct the Secretary of Commerce to identify every violation of trade agreements a foreign country is currently using to harm our workers.”
Mr. Trump also plans to nix the Trans-Pacific partnership and renegotiate NAFTA.
Mr. Trump said, “I’m not running to be President of the world. I’m running to be President of the United States – and as your President, I will fight for every last American job.”