Penn Wharton model shows ways Trump admin could lower debt while sustaining economic growth
Published On Dec 5, 2024, 1:43 PM
A new analysis from the Penn Wharton Budget Model suggests that significant reforms can reduce federal debt while promoting economic growth. Key policy proposals include simplifying the tax code, implementing a carbon tax, and reforming Social Security and Medicare funding methods. The changes are intended to address upcoming financial pressures on these programs and are projected to boost GDP by 21% over 30 years. The analysis emphasizes that debt reduction doesn’t necessarily have to compromise economic expansion or the social safety net, challenging a common misconception.
Stock Forecasts
ICLN
Positive
The reforms proposed by PWBM are likely to create a more favorable economic environment, which could boost the stock market in the long term. Sectors like renewable energy and healthcare may see increased investment as a result of these policies, particularly due to the proposed carbon tax and healthcare reforms.
XLE
Negative
The proposed tax reforms and carbon tax could negatively impact traditional energy sectors like coal and oil, potentially leading to short-term volatility for companies in that industry.
Related News
Why it may not be easy to restart the Keystone XL pipeline
Dec 2, 2024, 6:00 AM
President-elect Trump could look to restart the Keystone XL pipeline once he takes office in January, though the project was canceled in 2021 and resuming it could prove challenging.
Petrol prices: Drivers still paying over the odds, says watchdog
Nov 28, 2024, 6:34 AM
Fuel retailers' profit margins remain "stubbornly high", the competition watchdog says.
Why are ESG-oriented ETFs going away?
Nov 27, 2024, 8:37 AM
Financial firms have pulled back on offering ESG investment funds amid a regulatory crackdown and investors looking for other ETFs that can provide better returns.