ASA’s director of macroeconomics, Fabio Kanczuk, former secretary of economic policy at the Ministry of Finance and former director of economic policy at the Central Bank (BC), spoke about the possible effects of Donald Trump’s economic policy, known as ‘Trumponomics’, on the program WW Special presented by William Waack .
The economist He did not hesitate to classify the scenario as ‘hell’ for the global economy and highlighted several aspects of the Republican’s economic policy that could negatively impact the global environment, although he recognized that some sectors could benefit.
Kanczuk emphasizes that, in aggregate, the effects would be harmful. Among the points analyzed, the director of Asa pointed out tariffs as the most worrying factor. “Tariffs are bad, there’s no point,” he stated categorically when analyzing possible tariff increases promised by Trump when he takes over as president of the United States.
He explained that, from an economic point of view, tariffs generate a stagflationary effect, causing the economy to grow less and inflation to increase.
Other aspects of ‘Trumponomics’ were also criticized by Kanczuk. The expansionary fiscal policy, with more spending and less taxes, leading to an increase in public debt, was considered negative.
Furthermore, reducing immigration, although it may benefit some local workers, is seen as harmful to society as a whole, according to the economist.
Regulation: The only positive point
The only element of Trump’s economic policy viewed positively by Kanczuk was deregulation. “Lesser regulation is a paradise, in my opinion,” declared the former secretary BC’s economic policy.
However, this isolated aspect was not enough to change their general negative view of Trump’s impacts on the global economy, which could affect economic growth and international financial stability.
WW Special
Presented by William Waack, the program airs on Sundays at 10pm on all CNN Brasil platforms.
This content was originally published in ‘Trumponomics’ will be hell for the global economy, says ASA director on the CNN Brasil website.
Source: CNN Brasil
Bruce Belcher is a seasoned author with over 5 years of experience in world news. He writes for online news websites and provides in-depth analysis on the world stock market. Bruce is known for his insightful perspectives and commitment to keeping the public informed.
