With the first debate under the books, there is a clear distinction between the candidates and what they have to offer for the future of America. Small businesses are the backbone of the U.S. economy thus it is important to understand what Trump means concerning putting America first.
The issue of free trade is one that many conservatives, especially in this election cycle, have some stark disagreements over. Under a Trump administration, taxes will be cut overall, however will fair trade boost economic growth for the United States in the long run?
According to the Heritage Foundation’s ranking of the freest economies in the world, Hong Kong comes out on top. Why is this so? The island of Hong Kong does not compare in size to the United States, and lacks the natural resources and capital available for economic production, yet the economy is stable and unemployment is at a perfect 3.2 percent.
The fact of the matter is that Hong Kong has the perfect combination of property rights laws, deregulation, and open markets. Hong Kong has a zero percent average tariff rate and foreign investors have complete ownership of their company if they choose to open their business in Hong Kong. In addition Hong Kong has the lowest corporate tax rates of any other country in the world. Who would think that deregulation, open markets, and strict enforcement of property rights laws would bolster such great economic growth?
So what does this have to do with America? The United States has one of the highest corporate tax rates in the world. Unemployment is at 6.2 percent, double that of Hong Kong. Government over-regulation has run rampant under the Obama Administration and the average tariff rate is 1.5 percent, thus increasing the price on imports. Should the U.S. look to the economic model of Hong Kong to both increase economic productivity, reduce unemployment, and maximize the efficiency of capital? I believe the answers should be yes.
Taxes are a part, but the issue of free trade and open markets is particularly critical concerning the economic development of the United States. Americans are still the most productive workers in the world, it is in our blood. The values of hard work, self-determination, and individual pursuit is still alive and well in the land of the free and the home of the brave. A combination of deregulation and open markets could serve as an opportunity to not only attract the best the world has to offer, but to open new opportunities for the American worker. Putting America first should not mean restricting the trade of goods and services in the global market. America should welcome the challenges of competition from other countries and prove why America is still the best place to do business! It all begins with government getting out of the way, and allowing the free market to work and operate independently.
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