Latest / Best of Business / Liam Dann: NZ Herald business editor at large on the economic impacts of Donald Trump's presidency

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Liam Dann: NZ Herald business editor at large on the economic impacts of Donald Trump's presidency · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks. That'd be
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  Speaker 2: Now, Donald Trump has promised Americans he's going to save
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  Speaker 2: the economy and deal with the cost of living. Liam
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  Speaker 2: dan is the Herald's Business editor at large and with
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  Speaker 2: US Now, Hey, Liam, so is he just going to
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  Speaker 2: do it through tax cuts and tariffs?
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  Speaker 3: Yeah? Yeah, it sounds like that's the formula. People are
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  Speaker 3: scratching the head of a bit as to how it
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  Speaker 3: adds up because he's promised one account. One count I
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  Speaker 3: saw was twelve different kinds of tax cut on the
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  Speaker 3: campaign trail, which talied up to if he did them
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  Speaker 3: all something like three trillion dollars out of the US
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  Speaker 3: revenue government revenue over the next ten years. Three trillion
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  Speaker 3: dollar US dollars is quite a lot, and that of
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  Speaker 3: course means you need to well you either need to
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  Speaker 3: fund it from somewhere, you need to borrow a lot more,
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  Speaker 3: which is why bonds.
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  Speaker 2: But he's also promising to pay down debt.
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  Speaker 3: Yeah. See that. There was a British prime minister who
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  Speaker 3: tried tried to say all that stuff and it didn't work.
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  Speaker 3: Trust was sunk by the bond markets because the numbers
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  Speaker 3: didn't add up, and the bond markets, as they say,
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  Speaker 3: are the most powerful thing in the universe or in
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  Speaker 3: the known world. Look. Yeah, so it's going to be
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  Speaker 3: very interesting. And I guess what the issue is how
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  Speaker 3: much he decides to worry about everything he said on
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  Speaker 3: the campaign trail. There's going to be some more tariffs,
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  Speaker 3: and there's going to be some tax cuts of some sort,
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  Speaker 3: so probably corporate, and maybe that will stimulate the economy
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  Speaker 3: all the rest inside America, putting aside the tariffs.
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  Speaker 2: I mean, also, his timing is great, right, so he
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  Speaker 2: is taking over presumably as the American economy starts to
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  Speaker 2: pick up, as we start to get inflation under control,
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  Speaker 2: so within a matter of months people will be feeling
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  Speaker 2: better anyway.
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  Speaker 3: Yeah, well, tariffs would be a one off, one off bump.
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  Speaker 3: They are inflaate, they would be inflationary.
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  Speaker 2: I mean, he's not going to go ahead with the
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  Speaker 2: tariff tariffs, so lam.
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  Speaker 3: Well, the sixty percent is hard to imagine. You know,
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  Speaker 3: you'd think he would have to do something to sort
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  Speaker 3: of having having talked about them so much. But I mean,
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  Speaker 3: I think the numbers are details, right, He's not a
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  Speaker 3: details guy, so I think as long as he makes
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  Speaker 3: some move there, you know. But yeah, so look, does
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  Speaker 3: it does it fix the economy? He's certainly in the
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  Speaker 3: right place in the cycle. So it wasn't a great
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  Speaker 3: place for Joe Biden because well, you know, for the Democrats,
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  Speaker 3: because inflation is back in the box technically, but it
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  Speaker 3: doesn't feel like it to people for a while. Yeah,
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  Speaker 3: because you know, you can tell people that the economy
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  Speaker 3: is great, and I think that was part of the
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  Speaker 3: problem that you know, people were being told that the
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  Speaker 3: US economy was great and they didn't feel like it
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  Speaker 3: was great, and so it just played into that whole
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  Speaker 3: narrative of being told by the establishment that they should
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  Speaker 3: stop complaining.
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  Speaker 2: Yeah, totally. It's going to be an interesting one, as
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  Speaker 2: you were just saying to me off there, and we
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  Speaker 2: have to wait until he's an office to really see
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  Speaker 2: what it does.
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  Speaker 3: A lot of speculation over the next few weeks and months,
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  Speaker 3: and of course we could go around in circles in
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  Speaker 3: New Zealand worrying about tariffs and what may or may
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  Speaker 3: not happen for wine growers and so on. But you know,
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  Speaker 3: and and the impact on China. But look at the moment,
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  Speaker 3: markets are very happy, and they're happy because there was
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  Speaker 3: a clear, clean result, and also they can wipe tax
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  Speaker 3: hikes off the table and more regulation off the table,
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  Speaker 3: So your Kiwi savers up and you probably don't have
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  Speaker 3: to worry about it till at least January twenty or
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  Speaker 3: whenever the inauguration is. So that's your consolation life. You
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  Speaker 3: don't like Trump, just and enjoy the market.
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  Speaker 2: Run Yeah to take the money, Liam, Thank you very much,
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  Speaker 2: appreciate it. Liam Down, the Herald's Business editor at large.
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