Must-Read: Martin Wolf: Donald Trump’s False Promises

Must-Read: Anything wrong with this analysis? I cannot see anything:

Martin Wolf: Donald Trump’s False Promises: “Fiscal loosening with monetary tightening would mean a stronger dollar and a rising current account deficit…

…would, as in the early 1980s, increase protectionist pressures–Ronald Reagan’s administration was quite protectionist in its first term…. But protection against imports would raise the currency’s value further, shifting the adjustment on to unprotected sectors–above all, on to competitive exporters…. A strong dollar must weaken the manufacturing Mr Trump seeks to help…. The president-elect has also promised to eliminate Obamacare and most environmental and financial regulations. It is hard to believe any of this would succour the prospects of the working class… worse health cover, a dirtier environment, more predatory behaviour by financial institutions and, at worst, even another financial crisis. Protectionism, too, will fail to help… his supporters… [who] depend on cheap imported goods….

A burst of infrastructure spending, regressive tax cuts, protectionism, cuts in federal spending and radical deregulation. A big rise in infrastructure spending would indeed help construction workers. But little else in these plans would help the working class…. The longer-term consequences are likely to be grim, not least for his angry, but fooled, supporters. Next time, they might be even angrier. Where that might lead is terrifying.