What's the Connection?

The economic principle I examined is the idea that government can improve markets and personal wealth. There are many different examples of how this economic principle can be applied to life. While studying Trump’s taxation policies and his effect on people and the market, I found many examples of this principle. First, Donald Trump claims that he will decrease corporate tax by twenty percent which will help bring jobs back to the United States and prevent companies moving from overseas. This will ultimately help the economy because it will bring bing corporations back to the stock exchanges. Secondly, Trump says his taxation will ultimately help investing. In an article from the Washington Times it says “the corporate tax will be cut in half, investor taxes will be down about 15 percent and money will flow back to America from a lower repatriation tax. . .  the lower taxes on businesses and investors will translate into trillions of dollars of gains for investors and pension funds with wages and GDP surging too.” This will bolster people’s confidence in investing. Finally, Trump claimed that he would lower taxes for the middle and upper class. If he does this, people will be more likely to take that extra money and invest it back into the economy in stocks and bonds. Overall, you can see that lowering taxes and making it more a free market society will improve markets and personal wealth.