Read superficially, the slogan does not mean much; but analyzed based on the proposed policy changes by the Trump administration, one starts to figure out what President Trump means by making America great again.
The underlying theme for the Trump administration is to facilitate growth of business within the US so that more US citizens get employed locally; and ultimately growing the living standards of the people across the US. To achieve this however, President Trump and his administration must address some of the key factors that have been acting as a hindrance to the process of making America great again.
According to President Trump, limited access to credit has been one of the leading courses of slow economic growth across the US. The president blames the stringent rules within the banking sector in the US for the inability of business people to access loans to expand their businesses; and ultimately employ more US citizens in order to help alleviate the high unemployment rates across the country. Speaking when he gave an executive order to repeal the Dodd-Frank reform act, President Trump said that “I have so many people, friends of mine, with nice businesses, they can’t borrow money, because the banks just won’t let them borrow because of the rules and regulations and Dodd-Frank.”
In order to ensure that more businesses and individuals can access credit, the Trump administration plans to introduce policy changes that will reduce regulations within the banking sector across the US. The repealing of some of the sections of the Dodd-Frank reform act is just but the first step into the process of ensuring that individuals and businesses are subjected to lesser bureaucracy when applying for loans. This does not however mean that the credit scoring rules and regulations will be abolished totally; on the contrary, you will still be obliged to keep your credit report accurate in order to access more lines of credit. The goal of the policy changes is to reduce bottle necks but not necessarily to expose the whole credit system in the country to potential misuse and manipulation.
From a business perspective, increased access to credit is a great thing since the businesses will now be able to expand their operations without much financial struggles. It is expected that with minimal regulations, banks will also be willing to lend more to the businesses in order to increase their interest incomes and boost their net profit margins. With the growing lending to businesses, banks will eventually find themselves in a competition for clients and hence lower their interest rates in order to attract more business clients. As the interest rates fall within the economy, business will find it cheap to borrow money to invest in their capital expenditures such as business expansion, opening of new business branches, adding more product lines or simply increasing the production volumes of their current goods or services. Reduced regulation will therefore ultimately lead to growth in the banking sector and the businesses that rely on banks as a source of external capital.
From an individual perspective, fewer regulations will result to higher borrowing due to increased ease of access to credit. This will eventually drive the growth in demand for goods and services being produced by business across the US. The increased consumption will in the end drive the growth in production for businesses in order to match the demand and supply. Previously, businesses could have had a difficult time raising the needed funds to expand and meet the growing demand from their customers. However, with relaxed banking sector regulations, the businesses will be able to access the needed capital as explained above and hence complete their borrowing and expansion cycles as they fall due.
President Trump is an accomplished business man and in his economic recovery programme, he has chosen to adopt the business growth strategy. Whether growth in business and the rise in the consumption capacity of the citizens will eventually lead to growth in the economy will be determined over time as the new policies start being implemented.