This question is based on the article, ” The contradiction at the heart of Trumponomics ,” published by The Economist on May 13, 2017.

1. This question is based on the article, “The contradiction at the heart of Trumponomics,” published by The Economist on May 13, 2017. The article argues that having tax cuts, an investment boom, and a smaller trade deficit cannot be jointly achieved.
(a) The article points out that “foreigners own American assets worth $8.1trn more than the assets Americans own overseas, a difference equivalent to 43% of America’s GDP.” Then, why does the US receive more income from its investments abroad than it pays out? [10]
(b) Based on the discussion in the article, what is likely to happen to the total supply of funds available for investment and the cost of borrowing in America if the US government manages to restrict the economy’s trade and eliminate its trade deficit? [10]
(c) The article claims that closing of the US trade gap contradicts the tax-cut and high investment components of Trump administration’s economic strategy. What is the article’s reasoning behind this claim? [7] What is Trump’s counter argument? [5] Does he claim that this contradiction can be dealt with immediately or over time? [6] What is the article’s reasons and evidence for doubting Trump’s counter argument? [10]
(d) According the article, why a rise in productivity growth may lead to increased, rather than reduced trade deficit for the US economy, at least in the short run? [11]
(e) The article claims that changing tax policies to encourage American firms to bring home the massive cash they have parked abroad may also increase the trade deficit, and to the extent that it may appear to reduce the trade deficit, its effect will not affect actual production in the US. What is the reasoning offered by the articles for this claim? [11]







Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10