This year China's annual GDP has dropped below 7% for the first time since the 2008 financial crisis. As it is known, China is still playing the most important role in determining the health of our global economy, and it's slowing demand, especially when it comes from some commodities such as oil and gas, may affect developing economies which supply their resources to China. As a result, some experts think that the world should prepare for a great deal of volatility in emerging countries: Brazil, Indonesia, Chile, and South Africa to name a few.
Nevertheless, although the consensus is now that the U.S. is still the world top economy, many countries believe China has already replaced U.S. as the global superpower. indeed, President Trump declared, in his victory speech last week, that he will root his efforts to make America's economy great again. He also expect:
- American oil and gas production to surge;
- there will be no chance of a federal carbon tax;
- President Obama's Clean Power Plan is likely history;
- the U.S. will not ratify the Paris climate accord, and will not regulate its internal carbon dioxide emissions.
In addition, President Trump said that tax cut and pro-business policies will result in million of new jobs. Unfortunately, tax cuts from the late 1970s to the early 2000s have always been focused on the reduction of income taxes at the top of the income scale: on rates paid not by ordinary working people but by the extremely rich. On the contrary, a progressive tax on high incomes and capital gains would favor business enterprises, rather than the individuals who control them, and would increase employment. As argued by J.K Galbraith, "resources are needed, and could be used, for larger pressing purposes that meet greater needs". I think that a tax cut policy wouldn't create new jobs. It would increase the flow of income to the pocket's of the 10 percent very rich people.
