On January 20, 2016, the country is sending a businessman to Washington in one of the riskiest bets in history. Donald Trump appears to be intent on running the country like a business enterprise. But Trump is not just a business man. He is a real estate developer, an important distinction, as it impacts how he will think about revitalizing an economy that has struggled to maintain significant growth.
Trump promises to cut both corporate and individual taxes while investing up to $1 trillion on the country's infrastructure. By simultaneously decreasing the country's revenue and increasing its expenses, Trump would be making a huge bet that the resulting growth will be substantial enough to outpace the buildup of debt, potential inflation and recession that could be the outcome if his plan fails.
Not surprisingly, this bet is reminiscent of a real estate development, of which our President-elect is very familiar - use debt to invest in a property in the hope that the improved asset will generate enough cash flow to ultimately reward the investment.
Trump's real estate background provides him with the outline for how to fix the economy...
(Excerpt) Read more at cnbc.com ...
