Why Trump Will Lose: The Economy

As Trump himself said during the election, no matter who is elected, the next president will have to deal with an economic crisis. Trump used the adjective "massive." I think it will happen this year or early 2018. I predicted this in 2014. Of course I could be wrong and there are a number of things that might delay it. But unless the business cycle has suddenly been abolished, it will happen. The only question is when and how bad it will be. 

Trump's tax plan might delay it as massive tax cuts will be a strong, but temporary, stimulus. But the best outcome for Trump is for the slump to come sooner rather than later. Unfortunately, massive tax cuts and spending increases would delay the inevitable, and make it worse. Some are predicting that the recession will be delayed until 2019. 

My update on my 2014 prediction is that it will not be as bad as 2008, but there are plenty of things Trump could do to make it a lot worse. I know the perception is that I am pro-Trump, but in fact, it seems likely that Trump will screw this up badly. I do agree with his policy not to have a war with Russia, and stop mucking around in other countries, but beyond that I do not agree with him. 

Here is David Stockman, Reagan's director of OMB, Office of Management and Budget, on the coming crisis. I am not as pessimistic as he is, but I think he is right.