Deflation is bad for economy though.
The solution will of course be to improve wages. If wages increase, then the inflation can be kept at 2% while people's lives improve. Will he be able to improve the economy to such a degree though, that is another matter (to be fair, Biden's administration was doing a decent job at improving the economy, so Trump is in a better position than when Biden took over with the economy in shit).
A lot of noise in this thread, and crazy hysteria which is to be expected from RedCafe.
Trump's big win, plus a majority in the Senate and House, puts him in a solid position to get his agenda through Congress. A lot of these members rode in on his coattails, so they’re likely to back him, which could lead to a pretty united government—a shift that seems to be what people want right now and could keep markets on a high for a while.
When it comes to tariffs, he can go solo without Congress, so we might see changes on that front right away. Even with all his tough talk on China, he kept tariffs relatively balanced in his first term, so I'm hoping he continues that approach.
Tax policy is likely at the top of his list too, especially since his previous tax cuts are about to expire. Extending or boosting those could happen fast since it’s a straightforward move compared to other initiatives.
The deficit’s a tough one. But if the economy can grow at 3% or more, it’ll ease a lot of fiscal strain. Since 90% of the budget is tied up in entitlements, defense, and interest, there’s not much room to cut spending. So,
economic growth is really the best bet to bring in more revenue.
On immigration, he might get something through Congress, but it won’t be easy. He could use the earlier template from this year to start, but it’ll still be a complex process.
All in all, he’ll need to juggle a lot to keep the economy growing fast enough—more than 3%—to balance out the weight of the $35 trillion debt that’s looming larger by the day.