Can Trumps economic plan work?

[Benton]

(01-11-2017, 02:47 AM)hollodero Wrote: OK, sounds all logical and educating (although I always feel that this has to lead into armageddon since the ressources and the planet don't grow accordingly, but be it, what do I know. Ignore these brackets).
A Corolla now certainly is one distinct product, whilst "growth" as you define it (keeping the economy going) is a result of a span over all sorts of products, the important factor being overall purchasing power. Maybe Corollas isn't what the Indian market needs, but incomes are growing, hence demand is growing, after whatever rocks an Indian's boat.

Now in your model the US salary grows, prices grow, products get still sold and we created more zeros behind the numbers of our balances. We buy new cars, TVs, magic pyramids and easter themed socks and keep the wheel spinning. 
Problem is - it was assumed earlier that US workers would take an actual paycut. At least not a substantial raise. Which kind of seems contradictory. In this case, Indian and Chinese (and other) markets would have to be growth providers (for the wages there are on a more distinct rise, so products of heightened total price can be sold there). These markets would bear the potential, while American wages at least grow less rapidly and hence can't provide what you call growth in a similar extent; hence there's a "growth potential gradient"; hence the foreign markets are utterly important for potential growth; hence tariffs make everything worse. Isn't that true?

good points. I guess my only issue it's going to take India and other countries a long time before the purchasing power gets big enough to comparative to the us.