Donald Trump promised his supporters at an Aug. 8 rally in Detroit that he will take the U.S. economy to “amazing new heights.” Yet, some students at IU’s Kelley School of Business disagree with his plans and how they can strengthen the U.S. economy.
“I just don’t understand,” IU junior Nick Leuthold said. “It just doesn’t make sense.”
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Dallas Maverick’s owner and Kelley School of Business alum Mark Cuban has already come out and endorsed Hilary Clinton, citing Trump’s economic plans as bad for the country.
Leuthold is majoring in economic consulting and information systems and said from a few major things Trump has said, he does not think Trump will improve the economy at all.
One factor Leuthold pointed to was the bond market. The U.S. bond market is one of the largest in the world at 31.2 trillion dollars, and Leuthold said Trump’s plan to lower what is called a “maturity rate” will destroy the U.S. economy.
If Trump lowers the maturity rate, a bond worth $500 will be paid back for $300 and will damage U.S. credit and the economy at large.
“That destroys the U.S. credit,” Leuthold said. “It doesn’t make any sense.”
Trump has also said the U.S. dollar is the weakest it has ever been, but Leuthold said that simply was not true. Leuthold said the dollar is actually stronger then it was before the 2008 housing market crash.
“We’re not that bad off,” Leuthold said. “He’s using that as a ploy.”
Peter Mowery, another junior in Kelley, said he had similar concerns and added Trump’s tax plan does not make sense.
“There is almost no way to make the numbers work in any feasible way,” Mowery said.
Mowery explained that Republican candidates since Reagan have advocated tax breaks and a “trickle down” system for the economy, and that does not work historically, he said.
“In practice, it usually doesn’t work,” Mowery said.
While Trump has claimed his past business success as a platform by which he knows how to handle finances, Mowery said he is skeptical since Trump has yet to release his tax returns and he has only ever had one publicly traded company.
“We don’t know how much he is,” Mowery said. “I’d rather see his tax returns.”
While Trump certainly has money, Mowery said he would not label him as a top tier business person nor as a person he, or Kelley students he is around, would support.
“I cannot name a single person I know who supports him,” Mowery said.
Clare Wang, an IU senior also in Kelley, said while she is not involved in the political process, she does see a lot of controversy swirling around Trump and his past business mistakes.
“Once you make a mistake it’s hard to get that reputation back,” Wang said.
Mowery also said he has already cast his vote and is now just watching for the entertainment presented by the debates and the candidates.
“I already voted last Friday,” Mowery said. “I voted for Hilary Clinton.”
While he said he does not agree with all of Clinton’s policies, he does see her as the more experienced and sensible choice.
“It’s not about politics anymore,” Mowery said. “It’s who do you think will run the country competently.”
