Although it is widely believed that Trump's election is positive for #BTC and cryptocurrencies, what about the economy of the United States? After all, economic development is the most important thing. From the public statements of the two candidates so far:
Trump's election may increase government fiscal spending, which could lead to situations such as rising inflation and increased government deficits, which may not be good for the U.S. economy.
On the other hand, Harris's statements are more in line with the current development of the U.S. economy and have received recognition from two Nobel laureates in economics, although this does not exclude it being part of the campaign.
But it can indeed be seen that if I were Powell, Harris, and Trump, I would choose Harris to make the inflation in the U.S. go down a bit smoother.
The viewpoint on this issue is, on one hand, Trump's actual proposals regarding fiscal spending:
1. Increase in defense spending: Trump advocates expanding the military and increasing the defense budget to ensure America's global military advantage. This will directly increase federal government spending.
2. Infrastructure investment: Trump proposed a large-scale infrastructure construction plan aimed at improving key areas such as domestic transportation and energy facilities.
3. Immigration policy enforcement: Trump plans to strengthen border security and immigration enforcement, including building a border wall and increasing law enforcement personnel. This will directly increase federal government spending and typically requires a large amount of federal funding.
4. Tax policy adjustments: Trump plans to make the 2017 Tax Cuts and Jobs Act permanent, continuing to lower personal and corporate tax rates. In addition, he proposed tax exemptions for gratuity income and Social Security benefits. These measures could lead to a decrease in federal revenue, thereby increasing the fiscal deficit.
According to current statistics, although Trump has also proposed plans to cut unnecessary federal government spending, the above policies could lead to an increase in the U.S. federal fiscal deficit of about $7.5 trillion over the next decade.
