In early trading the Dow Jones industrial average surged more than 1300 points, or about 3%, with expectations that a second Trump term will bring major policy changes, including more tax cuts, more deregulation, more mergers and acquisitions and more domestic crude production. Some of the biggest winners were banking firms and oil companies. Trump’s company that runs his social media platform took off, as did bitcoin, thanks to Trump’s remarks that he would make the U.S.
He has promised not only to extend expiring provisions in his massive tax cuts in 2017, passed during his first term, but to drive the corporate tax rate down even further. But Trump also plans to increase tariffs on imports, especially on Chinese goods, and to deport millions of undocumented immigrants. If followed through, these actions are likely to be inflationary, cause business disruptions, shrink the labor supply and slow economic growth down the road.