Derek Holt, an economist from Scotiabank, cautions that a second Trump term could lead to damaging economic policies marked by extreme protectionism, soaring debt, and poor fiscal discipline. He argues these consequences would destabilize the U.S. economy and have ripple effects globally, especially given Canada’s reliance on U.S. trade. Holt does not endorse Kamala Harris but suggests she may pose less risk than Trump.
A second term for Donald Trump could plunge the U.S. into severe economic turmoil, according to Derek Holt, an economist at Scotiabank. He warns of extreme protectionism, a demographic crisis, and rampant debt growth, fueled by irresponsible fiscal strategies. Trump’s approach could destabilize both U.S. and global markets, particularly as the economy appears to be in excess demand, countering the need for additional fiscal stimulus.
The article delves into the impact of a potential Trump presidency on the economy, emphasizing the significance of U.S. policies on Canadian interests. With Canada heavily reliant on U.S. trade, any shifts in protectionism or fiscal policy could reverberate across both nations. Holt expresses concern over immigration policies and fiscal management under Trump, suggesting that financial management could lead to higher future taxes amid a precarious world landscape.
In light of Holt’s warnings, a Trump victory could have dire consequences for the economy due to reckless fiscal measures and detrimental immigration policies. This could exacerbate the already high U.S. debt levels and threaten stability both domestically and internationally. As such, deliberating between political options comes down to selecting the lesser of two potential catastrophes for the economy.
Original Source: financialpost.com
