An Analysis of the IncomeTax Policy and Foreign Trade Proposals of DonaldTrump and Hillary Clinton, and their effects on the Gross Domestic Product of the United States

Abstract

The Republican and Democratic parties in the United States have always disagreed to an extent on what economic policies should be implemented to expand the national economy. Past historical trends show that Republicans have generally opted in favor of supply- side economics, and argue that allowing the wealthy to re-invest into the economy is the best way for revenue to work its way down to the middle and lower classes. They have also generally been proponents of free trade, taking a more laissez faire approach to government intervention in the economy, or the international market. Democrats on the other hand, usually propose regulating larger corporations and raising taxes, where necessary, to make sure that wealthier Americans are paying just as much as their fellow citizens. These two different approaches have had varying results in the past, however Democrats and Republicans have generally been able to maintain a fairly consistent platform throughout the last several decades, and have made compromises when necessary. 2016 in particular however, has been a year of extremes. The presidential election of 2016, regardless of the eventual winner, will have a profound impact on the economy of the United States, and by extent, the rest of the world. The two major-party nominees have both put-forward very different views on what they believe is the most appropriate way to expand and re-energize a stalling United States economy. Democratic Party nominee Hillary Clinton has called for the strengthening of global economic ties, upon which free trade thrives, and has been very pro-free trade in her previous political offices, while Trump, in stark contrast, has proposed going back to a more old-school economic policy based on protectionism, and tariffs for foreign imports, and for American imports produced overseas which would in theory cut the United States' enormous trade deficit, and prevent companies from outsourcing overseas, to countries in which it is cheaper to produce goods.