The present time has tolerated at least one character that each period in the annals of United States has bequeathed its citizens – Donald Trump -and one belonging to an age than their own whose conduct has drawn many frothy debates on what direction is their way towards long-awaited economic soundness for United States. This paper gives in-depth presentation over how the game of politics in Donald Trump may challenge the stable economy of US and business moves of Elon Musk, and also why such a risk is justified at a deeper look.
Political Decisions And Uncertainty About Economy Under the Trump Effect
Donald Trump is the 45th president of the United States of America. Doubtless, he is among the most divisive politicians in the American politics, but without doubt, his presidency and policymaking have shaped the US economy a lot. Many of his measures carry an overwhelming threat to the stability of the economy.
1. Trade wars and tariffs
For example, the trade war made Chinese product tariffs become one of the most disputed items of economic policy enacted, but ultimately increased it into a full-blown, all-out war. In addition, this aimed to defend America’s industries and jobs while inflating business operating costs among enterprises and the buying public. Once again, according to the study conducted by the National Bureau of Economic Research, these trade tensions cut down the impact of U.S. GDP by around 0.3% and it also costs a normal American house around $800 per year.
These types of trade policies brought uncertainty to borders between the investment since there were no limits for firms relating future expense also market situations.
These policies instigated ripples that spread on to the World markets and contributed further destabilizations of America economy.
2. Tax cuts that result in debt accumulation
The Trump Tax Cuts and Jobs Act of 2017 would have brought forth the economy faster with low corporate tax rates. Tax cuts initially boost stock markets and corporate earnings but are weaker in the longer term. After the tax cut, the federal deficit became astronomical and added trillions of dollars to the national debt.
This again has also raised questions about the future of economic stability in terms of national debt in general and threatened to cause damage to the capability of the federal government to be ready and prompt enough to react towards even the slightest possibilities in the future, such as any sort of recessions or pandemics. However, the spill over effects of the tax cuts have also had the profoundly skewed impact on the service of interests of the wealthiest persons and firms whose advantages, in so many respects, have fostered increased unease over the income inequality issue and also continued to undermine popular confidence in the rational operation of the economy.
3. Institutional Erosion
This loss of trust came as a result of Trump’s continued pounding at the doorsteps of Federal Reserve credibility. How this pushing down of economic data to his words led to such a loss in trust regarding these highly esoteric entities that speak promises of stable economics. This provides grounds from where the economic institution can be politicized as this uncertainty climate gets hard in its nut crunching process during ‘business’ ‘ and investors making decisions.
Factor Musk: A Disruption-Volatility Couple
He is that billionaire entrepreneur who founded or led companies such as Tesla, SpaceX, and now Twitter, famously known as X. The man is always hailed as an innovation man in vision but has made very risky steps that add to a lot of dangers in the US economy, particularly the sectors of technology and finance.
1. Stock Market Manipulation
All his posts on the microblog site and to the public affect the stock prices without factoring compliance issues. For example, when in 2018 he posted that the company was going private at $420 a share, Tesla’s stock price jumped hours later, but came down as fast as it would be realized that the statement was not any action under consideration.
This further shackle the confidence of investors and adds an element of market manipulation. The SEC has reminded Musk several times, yet the action is justified for the level of volatility witnessed in the market, which may even signify even greater concerns on the matter of economic stability.
2. Twitter Takeover and Its Aftermath
One such very controversial acquisition is the buyout of Twitter by Musk in 2022 for $44 billion. Such undisciplined management style combined with large-scale layoffs and reinstatement of blocked accounts has both advertisers and users alienated. Still, it continues to question whether such a huge company can be well-managed under Musk and, therefore, revenue and value continue going down.
This acquisition has spilled over into other businesses initiated by Musk. For example, stocks of Tesla are declining because of the apprehension that there could be delays in other business ventures scheduled and the pressure being mounted on the pocket of its purse for purchasing Twitter. This goes against further economic growth with the influence that the company wields in terms of the American economy and the weights that the same has in the electric vehicle sector.
3. Labour Practices and Economic Inequality
They generally provide working conditions that are hardworking and significantly reduce the cost of operation. Though such methods led to innovation and profitability, the economic inequality as well as labor conflicts were attained. For example, Tesla had several cases on charges of workplace discrimination against it while also hostile working conditions.
Such a practice also negatively impacts employees, and it has long-run sustainability issues about economics, mainly because the purchase powers are lower as well as higher social conflict.
Combination Impact: Perfect Storm?
In a way of speaking, Trump and Musk work in the two other planets-politics and business-but at feature, there is something alike that should, in principle and practice, have shaken the U.S. economy to its ground. They happened to be very habitual in being able to generate immediate advantages of a sustainable life often on the backs of institutional trust and social bonds.
1. Institutional Trust is being Eroded
From rhetoric, in the political sphere of discourse, confidence levels in the institutions that the nation would want are systematically eroded. The corporate practice has been ably shown by Musk and similar breeds who have done that but in other modes of communication. With lower degrees of trust, uncertainty in the economy raises and investments stall. And such organized destruction brings to an end the economic growth and finally degrades the country’s ability to react to any sort of emergency.
2. Enhanced Volatility
All these unchecked factors, that have sneaked into the US economy both by the policies implemented by Trump as well as by the business choices taken by Musk, have brought havoc volatility accompanied by unstable stocks and unsure trade policies, therefore making long term planning both by the business as well as by the customer impossible, thus dragging down finally the economy development.
3. Rising Inequality
Worst of both-the rich and labor-have amplified an ever-growing economic divide between tax policies that favor the rich and labor practices that make money from workers’ impotence. Inequality is not only a failure in social stability but also an economic drag, too, since people spend less and borrow more.
Conclusion: Call for Accountability
Indeed, no doubt, Donald Trump and Elon Musk are restructuring America’s economy at different levels quite deep. On the contrary, these threats they pose have a potential of further breaking the stability within America’s economy in the long run. Their possible after-shocks of wars, market manipulations, erosion in institutions, and pushing inequality very sharply would best be considered against more responsibility required.
A rather complex world economy needs policies which guarantee sustainable growth, social equity policies, as well as well-structured institution building that brings forth bright stable and prosperous times for the betterment of Americans’ future altogether.
