American Economic Review
Trump’s tumultuous period of power has come to end, in the wake of the US 2020 elections. Joe Biden is set to become the 46th president of the United States of America. Trump’s politics revolved around the politics of identity rather than the economy or diplomacy. This is, probably the biggest reason Trump could not rewin the election. The recent American economic review presents a bleak picture, of the aftershocks of Donald Trump.
During his presidency, the process of dismantling economic and administrative policies continued unabated. During his stay on Capitol Hill, the United States was further embroiled in a series of crises that dented the US economy. In its longest war in Afghanistan, the country has already lost nearly $2 trillion.
Also, the deterioration of relations with economic powers around the world, especially China became more pronounced under his regime.
Flawed Economic and Diplomatic Policies
Further, the withdrawal of the United States from various financial agreements largely went against the interests of the country. Donald Trump, instead of taking substantive actions to improve it, was infatuated with the idea to build a wall on the Mexican border. It is the world’s most expensive wall in the world; $20 million a mile.
Considering the high cost, American Economic Review regards a burden on the national exchequer. Overall, its cost will be no less than $11 billion. As a result of these actions, there has been a series of outrages against the US President inside the United States and in the Western world.
The Longest Shutdown in the US
According to the American Economic Review, the economic shutdown cost the country billions of dollars. The imposition of an economic emergency after the longest shutdown (lasting for 34 days) in US history over the failure to raise funds has further hurt the United States. It cost them nearly 3 billion, affecting the common folks.
Meanwhile, major global financial institutions such as IMF, and the World Bank, and the several US and international economists have been sounding the tocsin about a major economic slump.
Trump’s Pull Out of JCPOA and TPP
Furthermore, Donald Trump further isolated the country with his pull out from JCPOA and TPP agreements. He has faced the most criticism from within his own country for his actions in isolating the United States from the world. It looks more pronounced and relevant keeping in mind, that it has always been proud of its multinational society and liberal ideals.
His first presidential order was the withdrawal of the United States from a proposed partnership agreement between the 21 major trading nations, which account for 40 percent of the world’s trade on the Atlantic Ocean, by the name of the Trans-Pacific Partnership (TPP).
Its pull out of the Joint Comprehensive Plan of Action (JCPOA), the US-Iran nuclear deal has also maligned its image in international politics. This eliminates the possibility of the United States increasing its trade influence in the region, which its archrival China is doing at a fast pace.
Trump’s Maladroit Diplomacy
According to the American Economic Review, the ongoing dispute with China and the European Union over the balance of trade and tariffs is a major hurdle, mainly intensified by Donald Trump.
The camel of the ongoing negotiations for the solution of which does not seem to be sitting still. Beyond that, President Trump has also turned a blind eye to US-backed India for decades and sought to end its special trade status in the United States by blocking access to American products in his home country.
American Economic Review: $27 Trillion Debt
Similarly, the United States, the world’s largest economy, is facing the most massive fiscal deficit in its history, reaching 779 billion in 2018 and exceeding 80 980 billion in 2019.
Interestingly, on the one hand, the United States has the status of the world’s largest economic power, and on the other hand, the United States has the distinction of being the world’s largest debtor, with a total federal debt of more than $27 trillion.
This does not include loans to the United States from existing states and local governments, which were worth about $40 trillion and $44 trillion in 2019.
American Economic Review: Increased Disparity Amongst the States
It is well-known that the process of unification of the 50 states of the United States under one federation spans nearly a century. The country has long been facing potential racial issues. It was Abraham Lincoln who played a pivotal role in uniting the United States during the civil war of 1863.
There exist many issues amongst the states on the division of natural resources. During the presidency of Donald Trump, the gulf between the states rich in natural resources but financially poor and those states the developed ones. His economic policies further perturbed the balance between the rich and poor states of the country.
The Per Capita is $64,000 While the Debt Per Capita is $68000
Further, according to the latest figures of December 2018, the latest estimates of the population of the United States are 32 million 80 million people. In the US, the number of blondes is near 54 percent. The total volume of the US GDP is $ 180 billion 55 billion. The income is per year 56,000 annual. The per capita is more than $ 64,000 while the debt per capita is nearly $ 68000.
The rate of increase in the GDP in the country is a 5-year-old and the industrial growth rate is 1.8 percent annually. It is less than over 5% of the world’s second-largest economy, China. His presidency further deteriorated the economic challenges that the Biden administration has not been able to handle well yet.
American Economic Review: $27 Trillion Debt Its Debt to GDP Ratio is 104 %
Apart from that, American Economic Review shows that the budget deficit is 2.9 percent. More importantly, the US government’s overall debt is 104% of the country’s GDP. Moreover, the inflation rate is 3%.
Keeping in mind these facts, the economists know exactly the fact that the US economy is now on “loan”. Therefore, on the day of any international economic slump, the day will be the funeral of the American economy.
Following are some key facts derived from the American Economic Review
Top 5 Exports of the United States
- Machinery including computers $206 billion
- Mineral Fuels $200 billion
- Electrical Equipment $173 billion
- Military equipment like aircraft $136 billion
- Vehicles & Automobiles $133 billion
Top 5 Imports of the United States
Machinery including computers $386 billion
Electrical Equipment $367 billion
Vehicles & Automobiles $306 billion
Mineral Fuels $241 billion
Pharmaceuticals $116 billion
Top 5 Export Destinations of the United States
- Canada $292 billion
- Mexico $256 billion
- China $106 billion
- Japan $74 billion
- United Kingdom $69 billion
Top 5 Import Partners of the United States
- China $450 billion
- Canada $320 billion
- Mexico $358 billion
- Japan $143 billion
- Germany $127.5 billion
[United States Census, Top Trading Partners-December 2019Share