How Election Results May Impact Budget Deficit, U.S. Economy

Real estate and energy partner David Drumm at Carrington Colemanin Dallas says the election of Donald Trump as president could weaken the U.S. economy in numerous ways. To the extent tax cuts are put in effect and combined with ‘feel-good’ spending policies on things like border walls and creating obsolete and inefficient factory jobs that the market economy does not want, we risk an increase in the federal budget deficit, when debt-to-GDP ratios are already at all-time highs, Mr. Drumm says. Weakening the U.S. federal treasury will also inevitably weaken the U.S. economy, because the debt rating on government bonds will deteriorate and we will have to apply more of our GDP to interest on the national debt.
On the energy side of things, I fear that a weakening of the economy will ultimately weaken demand for energy and thereby drilling activity.

For more information, contact Mark Annick at mark@androvett.comor 800-559-4534.

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