Donald Trump has promised a lot. His critics have, correctly in many instances, pointed out that he has been vague on how he will make America Great Again. But we can take a look at his general economic agenda and make a judgment on whether it can deliver the robust economic growth that he advertises. In particular, Trump maintains that we do not need to reform entitlement programs but that we can grow the economy sufficiently under his plan to pay for the current stream of obligations. Most economists estimate that the U.S. economy would need to grow at approximately 8% per year to meet this goal — something that no American economic expansion has come close to achieving in modern times.
The Trump economic plan essentially has three main components. First, encourage the repatriation of 2 trillion dollars that U.S. corporations have earned overseas but can’t bring back because of tax consequences. Second, reform the tax code. Third, get tough with our trading partners, particularly China, Mexico, and other countries that are “ripping us off.”