Donald Trump isn't going to push the U.S. economy into a recession if he occupies the White House, says Peter Navarro, an economist and Trump supporter.
In fact, Navarro claimed Trump's plan is the best for the economy since Ronald Reagan's reforms.
Research firm Moody's Analytics recently said Trump's plans would cause nearly 3.5 million job losses and sink the nation into a longer downturn than the Great Recession.
Navarro notes the lead author of the Moody's report (economist Mark Zandi) is a donor to Hillary Clinton's campaign, CNN Money
"The (Moody's) findings are based on flawed assumptions and gross misrepresentations of the Trump policies," says Navarro, an economics professor at the University of California-Irvine and a policy adviser to the Trump campaign.
Trump's economic platform has three key elements: A large tax cut for all individuals and businesses, a tougher trade policy and immigration reform.
Arguing one specific point, Navarro says Moody's grossly underestimated the benefits of the tax cuts. Trump has said he will make the necessary spending cuts so the plan doesn't add to the debt.
"In reality, Trump's tax package will significantly stimulate GDP growth, the rate of job creation, and the tax revenues raised much as the Reagan supply side tax reforms did in the 1980s," writes Navarro in his own report that came out Monday.
One very respected investing icon says it really doesn't matter who becomes the next president.
Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc, has said a Trump presidency wouldn’t be the blow to U.S. business that some fear, Bloomberg
“If either Donald Trump or Hillary Clinton becomes president, and one of them is very likely to be, I think Berkshire will continue to do fine,” Buffett, 85, said at the company’s annual shareholders meeting in Omaha, Nebraska.
The outcome of November’s presidential election is unlikely to change the fact that the U.S. is a “remarkably attractive place in which to conduct a business,” said Buffett, who endorsed Democrat Clinton at an Omaha rally in December. U.S. companies have enjoyed “terrific” returns on equity despite a sustained period of ultra-low interest rates, he added.
Buffett, who has criticized Trump in the past and scorned politicians’ pessimism about the country, looked past the current voter angst for a longer view of U.S. economic prospects.
“Twenty years from now, there’ll be far more output per capita in the United States in real terms than there is now. In 50 years, it’ll be far more,” Buffett said. “No presidential candidate or president is going to end that. They can shape it in ways that are good or bad, but they can’t end it.”
Asked how a Trump presidency might affect Berkshire’s business, Buffett replied, “That won’t be the main problem.” He didn’t elaborate.
(Newsmax wire services contributed to this report).
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