From Merryn Somerset Webb – Moneyweek Magazine (Great Britain) –
What has been forgotten amid all the angst and anger surrounding the election of Donald Trump is that he said some perfectly sensible things along the way (mostly hidden in the rest). And a good many of those things chime exactly with what the world’s economists have been saying.
No one’s mad for protectionism, and not everyone is behind the idea of large income tax cuts at the top end. But as David Smith points out in The Times, you’d be hard pushed to find an economist, “particularly on the left”, who doesn’t think that a $1trn infrastructure spend is a really good idea. One of the things that has been driving the likes of Janet Yellen and Mark Carney crazy for the past few years has been the way in which saving the economic world has been 100% delegated to them by governments. That has led them down the path of introducing ever more bonkers monetary policy in an effort to, as Carney puts it, “keep the patient alive” – and to being hit by endless criticism for pushing up asset prices and slamming down the returns on cash along the way. They’ve been asking for years for the fiscal authorities to stop “deflecting blame” on to them and to actually help out with a little stimulus. That’s exactly what Trump now intends to offer.