It’s been six months since President Trump signed the tax reform bill into law. The U.S. manufacturing sector is showing strong confidence and the newest polls show satisfaction with the direction the U.S. is heading has reached a 12-year high. But will the tax bill pay for itself by relying on a 3% GDP growth as the White House economic adviser suggests? And will there be a recession during Trump’s presidency? Economists and others in business weigh in on the tax reform’s effects so far and what’s next for the U.S. economy.
Also in this episode, how much power does China have in retaliating against the U.S. in the trade war? Much of the focus has been given to the total trade volume and the Chinese government’s power to limit U.S. investments and operations in China. That is not enough. To fully understand China’s retaliation power, we also need to understand its own economic condition. According to one Chinese finance scholar, trade war aside, China is reaching its Minsky moment; it is in no position to retaliate against external forces when its internal economic organs are already unstable.