America Needs a New Deal

epa05579110 Democrat Hillary Clinton (L) and Republican Donald Trump (R) during the second Presidential Debate at Washington University in St. Louis, Missouri, USA, 09 October 2016. The third and final debate will be held 19 October in Nevada. EPA/JIM BOURG +++(c) dpa - Bildfunk+++
Hilary Clinton and Donald Trump facing off in the second U.S. Presidental Debate on October 9. The third and final debate will be held October 19 in Nevada.
  • Why it matters

    Why it matters

    A controlled emergence from the U.S.’ mountain of debt is an essential precondition to long-term stabilization of the global economy, argues Prognosis AG’s Christian Böllhoff.

  • Facts


    • Slight tax increases, moderate budget reductions and economic growth of just over 2 percent would be enough to reduce the U.S. debt-GDP ratio to about 90 percent by 2030.
    • Mr. Trump’s proposed protectionism would make the U.S. economy weaker and lead to an overall shrinkage in the volume of global trade.
    • The Organisation for Economic Cooperation and Development (OECD) calls for raising the minimum wage, expanding “Obamacare” and supplementing wages for low earners to combat this long-term trend. However Ms. Clinton would have much trouble implementing such measures due to Republican opposition.
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Up until now, economic policy has scarcely played a role in the U.S. presidential campaign. Yet what is at stake are basic decisions about the economy’s future direction.

Three questions are especially important:

How will the future president deal with massive government debt, which is as high as at the end of World War II?

What are the candidates’ positions on globalization and on existing and planned trade agreements, such as the Transatlantic Trade and Investment Partnership (TTIP)?

What strategies will be implemented against increasing inequality and self-destructive polarization within society?

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