Donald Trump was recently voted Time magazine’s ‘Person of the Year’ and it’s hard to argue, considering his shock victory in last month’s US Presidential election, anyone has had greater impact in 2016.
But his influence isn’t going to end with the year. Soon, following his 20th January inauguration, he will be in command of the world’s largest economy and military. What policies he enacts will really matter – the Atlantic won’t provide much protection for British business.
So, what does Trump intend to do and how will it affect your business?
And how can Khaos Control Cloud, Enterprise Resource Planning (ERP) software accessible on any device anywhere, anytime enable you to make the most of the dangers and opportunities?
Trump and the End of Gridlock
Trump has unusual leeway to pass his domestic agenda. Both Houses of Congress are dominated by the same party as the incoming President – Republican. So, while they tied Barack Obama’s hands as a Democrat, they will now free Trump to fulfil as many of his campaign pledges as possible.
On taxes, Trump has promised to eliminate four of the current seven tax Federal income tax brackets, then reduce the remaining three considerably.
The President Elect is planning to deregulate the financial and energy sectors, cutting two regulations for each new imposed overall, and hopes to repeal and replace Obamacare.
Over 10 years, he hopes to spur $1 trillion worth of investment in public infrastructure, also wishing to spend roughly $500 billion more on the US military, to be offset with cuts elsewhere, in a similar timeframe.
A Shot in the Arm
Taken together, and viewed over the short to medium term, these actions should provide a shot in the arm to the US economy. That’s been reflected in improved growth forecasts and the American stock market soaring to all-time highs following Trump’s victory.
But there are flies in the ointment.
President Ronald Reagan cut taxes steeply in the 1980s, but failed to balance the budget as defence spending outstripped the ability of tax receipts from a booming economy to pay for it.
Trump could similarly explode an already sizeable budget deficit, storing up greater problems, like higher inflation and lower growth, down the road.
Then there’s trade. Obama stated before the referendum that the UK would be at the “back of the queue” regarding agreement of a free trade deal with America after Brexit. But Trump, a supporter of the UK’s departure from the EU, has elevated it to the front.
This can only be welcome news, but its benefits may be eclipsed by Trump’s protectionism towards developing economies. If he ignites a trade war with China, and renegotiates or rips up the North American Free Trade Agreement (NAFTA) such that net tariffs go up, higher consumer prices and decreased competitiveness will hamper the US economy in the long run, depressing global growth.
Trump’s NATO stance, threatening not to come to members’ assistance unless they contribute more to the alliance, is another headwind. A resurgent Russia may wish to test America’s resolve by invading the Baltic states, NATO members in which many ethnic Russians live, unleashing chaos on global markets.
The current recovery, now seven years old, is also getting long in the tooth. Trump may marginally hasten or delay the next recession, but it is surely becoming more likely with time given that downturns have typically occurred in the US every five years since WWII.
So, an initially buoyant US economy over the next one-to-two years, is potentially going to find itself in choppier waters thereafter.
Khaos Control Cloud can help your business take advantage of this buoyancy and will allow you to steal a march on your competition, if conditions do become more difficult down the line. Our mobile ERP application can run on any device, anytime, anywhere there’s an internet connection. Not just on a workplace desktop computer. Roving salesmen can have as much knowledge at their fingertips as a worker on the shop floor. There’s no middle-man. Just instant access to what you and your colleagues want to know.
That’s a significant advantage in these changeable times to having a solution that can let you plan and act strategically. You can experience the difference today when you sign up for Khaos Control Cloud.
Please Note: This article was edited on 21/02/2018 to reflect Khaos Control Cloud's updated process re: trials.