Trump's policies could shape 2017 economy
MONTGOMERY, AL (WSFA) - President-elect Donald trump will likely play a big role in what the country's economy looks like in 2017, according to AUM economics professor Keivan Deravi.
Deravi admits part of the challenges of projecting the economy under Trump's presidency is a degree of uncertainty because of Trump being an unknown quantity.
Deravi said if Trump is successful in passing his basic plan of tax cuts and investing a trillion dollars in infrastructure, there should be some strong economic growth in the short term.
However, there is a trade-off.
According to Deravi, Trump's spending plan would increase the country's deficit and would likely not create enough jobs to make up the difference to not have the debt grow.
"Without any question, if he pursues this policy, in the short run there will be acceleration in the US economy. The question is what would happen in the long run," Deravi said.
Other factors outside of Trump's control, like what the federal reserve does, could also impact what happens, which is just part of the complexities of the economy.
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