LEAD Magazine’s Interview With Nick Sargen on Trump’s Economic Policies

Fort Washington •
white house briefing

Nicholas P. Sargen, chief economist and senior investment advisor for Western & Southern Financial Group and Fort Washington Investment Advisors, Inc., was interviewed by J. K. Klaiber for the October edition of LEAD Magazine. In his article, “The Good, The Bad and The Ugly of Trump’s Economic Policies,” Klaiber shares Sargen’s thoughts on which aspects of President Donald Trump’s economic policies should be the focus of investors.

The “good” among the economic policies are corporate tax cuts and deregulation. Corporate tax cuts have reduced incentives for U.S. companies to shift production abroad and have also stimulated business investment, while deregulation has been encouraging to small businesses because of lower administrative costs.

The “bad” is the lack of tax reform. Sargen describes how the second round of tax changes President Reagan implemented were designed to close tax loopholes so the budget deficit would not expand.  By comparison, the legislation the Trump administration has enacted will likely result in a significant expansion of the budget deficit in coming years, which investors need to monitor.

The “ugly” is the possibility of an unnecessary trade war. Trump has placed tariffs on steel and aluminum and most recently a wide range of commodities from China. They have impacted overseas economies and markets, and could eventually spill over to the U.S.

Sargen is the author of two books. His first, “Global Shocks: An Investment Guide for Turbulent Markets,” was published in 2016. His second book, “Investing in the Trump Era: How Economic Policies Impact Financial Markets,” was nominated for the 2018 Financial Times and McKinsey Business Book of the Year Award.

LEAD Magazine is part of Lead Tribune Media Group, a Cincinnati-based publisher, and is targeted to business executives.