Trumpworld Economic Advisers Pushing Different Policy Proposals for a Possible Second Term
Top GOP advisers and potential members of a second Trump administration are vying to promote various economic policy proposals, leading to disagreements among the individuals involved. These discussions take place at former President Donald Trump’s residence at Mar-a-Lago.
Advisers view a second Trump term as an opportunity to reverse economic changes made during the Biden administration and implement policies that would significantly impact U.S. economic and monetary policy on a global scale.
The public discussions and posturing around these ideas have frustrated top staff members of the Trump campaign, who are focused on winning the upcoming election, according to a report by Bloomberg.
The Trump campaign has emphasized that only policy proposals from Trump or authorized members of his campaign team should be considered official.
The Dollar
Many supply-side conservatives advocate for a stronger dollar, which has remained relatively strong due to the Federal Reserve’s high interest rates aimed at reducing inflation. However, some advisers to Trump are considering a radical departure in economic policy that involves intentionally devaluing the dollar to boost exports.
Former U.S. Trade Adviser Robert Lighthizer, a trade hawk and one of the architects of the tariffs imposed during Trump’s first term, is a major proponent of this policy shift. Implementing such a policy would require changes to the Federal Reserve’s mandate and administrative actions by the Treasury.
Lighthizer and his allies face opposition from other Trump advisers, including Stephen Moore, an economist at the Heritage Foundation. Moore believes that intentionally devaluing the dollar would have negative consequences for prosperity and stability.
Fed Independence
Trump advisers have discussed potential overhauls to the Federal Reserve and monetary policy in general. During his first term, Trump clashed with Republican Fed Chairman Jerome Powell, whom he appointed. Trump desired lower interest rates and publicly questioned Powell’s actions.
Some of Trump’s allies, including former administration officials, are working behind the scenes to propose changes that would weaken the independence of the central bank. They argue that Trump would have the authority to dismiss Powell as Fed chairman, although Powell would likely remain on the broader Fed board.
This small group has even developed a 10-page policy document outlining how to erode some of the Fed’s independence.
Flat Tax
Another long-standing idea among conservative economists is the implementation of a flat tax. Advocates for this idea include Stephen Moore, former White House economic adviser Larry Kudlow, economist Arthur Laffer, and Steve Forbes of Forbes Media.
Steve Forbes has been advocating for a 17% flat tax across all income brackets with generous exemptions. This proposal contradicts the progressive tax system that increases tax rates as income rises.
Trade
There are disagreements within Trumpworld regarding trade policy. Some, like Robert Lighthizer, support more tariffs, while others, such as Stephen Moore, lean towards free trade and argue that higher tariffs could harm consumers and lead to inflation.
The tariff proposals aim to reduce the trade deficit and protect domestic manufacturing jobs. They also seek to secure critical supply chains, which were exposed as vulnerable during the pandemic due to reliance on foreign nations for essential goods.
There is a diversity of opinions among informal advisers and allies of Trump, reflecting his fluid worldview. This includes pro-free traders, anti-free traders, supply-siders, and pro-family tax reformers. These contrasting worldviews could shape policy if Trump wins a second term.
When contacted for this story, the Trump campaign referred to a statement released in December 2023, clarifying that only messages from President Trump or authorized members of his campaign team should be considered official regarding future staffing or policy announcements.
SDGs, Targets, and Indicators
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SDG 8: Decent Work and Economic Growth
- Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
- Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation.
- Indicator 8.2.1: Annual growth rate of real GDP per capita.
- Indicator 8.3.1: Proportion of informal employment in non-agriculture employment, by sex.
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SDG 10: Reduced Inequalities
- Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.
- Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers.
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SDG 12: Responsible Consumption and Production
- Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
- Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.
Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The issues highlighted in the article are connected to SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities), and SDG 12 (Responsible Consumption and Production).
2. What specific targets under those SDGs can be identified based on the article’s content?
- Under SDG 8, the specific targets identified are Target 8.2 (achieving higher levels of economic productivity) and Target 8.3 (promoting development-oriented policies that support decent job creation).
- Under SDG 10, the specific target identified is Target 10.4 (adopting policies to achieve greater equality).
- Under SDG 12, the specific target identified is Target 12.2 (achieving sustainable management and efficient use of natural resources).
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets:
- Indicator 8.2.1: Annual growth rate of real GDP per capita
- Indicator 8.3.1: Proportion of informal employment in non-agriculture employment, by sex
- Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers
- Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth |
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| SDG 10: Reduced Inequalities |
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| SDG 12: Responsible Consumption and Production |
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Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: washingtonexaminer.com
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