Trump could lead the way to prosperity

The scale of Donald Trump's victory in America should be viewed as a serious challenge to Sir Keir Starmer's government, not only on issues of diplomatic relations and tariffs, but also on issues of core economic policy.

Mr. Trump's victory was based at least in part on widespread dissatisfaction among all groups of voters with the state of the U.S. economy after four years of President Biden. Inflation had helped erode the value of wages while the average American's disposable income rose sharply during Mr. Trump's previous presidency. When voters were asked to choose their leader for the next four years, they voted accordingly.

Having been given the mandate to stimulate the economy, Trump appears poised to build on his first-term strategy. His campaign has centered on enshrining his signature Tax Cuts and Jobs Act, and he has mulled further corporate and capital gains tax cuts as well as the size of government, with Elon Musk as the head of a government department Efficiency, less waste and bureaucracy were suggested.

In addition to these measures, the president-elect appears poised to tap what he calls “the vast reserves of liquid gold on America's public lands” by boosting fossil fuel production and pursuing an energy wealth agenda as the U.S are trying to capitalize on breakthroughs in artificial intelligence.

Mr Trump has previously stated that increasing demand for data centers will result in the US “probably needing twice the amount of electricity that is currently provided for everything”, and in addition to increased oil and gas production, he has also advocated for the Use of small modular reactors pronounced.

In the words of David Bernhardt, Trump's former Interior Secretary, the goal is for “every manufacturing plant, every data center, every semiconductor factory” to “want to be built in America – because America will be the place where energy costs are lower than.” anywhere else on earth.”

It is a potentially effective mixture. Nothing in this life is guaranteed to be successful, and it is possible that Trump's moodiness, his plans to impose tariffs on imports, or the size of potential deficits will prove too great a headwind to overcome. But it is a coherent plan with a good chance of achieving its goal of promoting growth.

In this it is in stark contrast to the strategy pursued by Sir Keir. For all the talk of growth leading up to the election, his record in office so far has been to push through one of the largest tax hikes in history, increase the regulatory burden on employers, and pursue a decarbonization agenda that seems single-minded to make our energy supply more expensive and less reliable. It would be beneficial to this country and his party if he considered following Mr. Trump's example.