Some experts are saying Donald Trump has the potential to be a massive force for good for the U.S. economy.
The story of the economy in the past eight years is one of tension between an aggressive "monetary" policy and a nonexistent "fiscal" policy.
Monetary policy has come from the Federal Reserve lowering interest rates to nearly zero in an effort to pump up the economy. This policy has led to tepid growth, and essentially run its course. There is only so much the Fed can do.
Fiscal policy is a combination of reforming the corporate tax code and government spending on big projects that will pump money into the economy and create new jobs. With Republicans now in control of the White House and both houses of Congress, the years-long standoff may be broken.
Economists have implored the White House for an increase in fiscal stimulus for years now, to no avail.
Trump could change all of this.
The first thing Trump mentioned in his victory speech was spending on infrastructure. During the election, Trump promised to spend heavily on programs that would create untold numbers of jobs in construction, steel manufacturing and other sectors. He said his focus would be on transportation, water, telecom and energy.
Beyond the infrastructure spending, Trump's economic policies include across-the-board tax cuts for individuals and a slashing of corporate taxes down to 15% from 35%.
In addition, he pledged to slash regulations that he said are burdening businesses and holding back job creation.
Finally, he said he would "repeal and replace" Obamacare, a pledge that he likely will be able to fulfill with a Republican Congress.
Economists generally have feared that Trump's spending stimulus and tax cuts would increase the national debt by $5 trillion or more. They also believe his fiery rhetoric about currency manipulation and tariffs could spark a trade war.
But Trump has maintained that economic growth would more than compensate and not necessitate tax hikes to pay for the infrastructure spending in particular
