As Donald Trump gets ready to take charge of the White House backed by the overwhelming support from millions of Americans enthralled by his promising quotes like ‘make America great again’ and ‘take America back’ that will be at the forefront of the desk when economist all over the globe start assessing the impact of his governance. There is no denial about the fact that economists are uncertain of Trump’s economic plans. It’s been a while since the US last toped the Forbes’ annual list of the countries with the best business environments. Sadly, 2016 did not bring any good news either as a matter of fact the country dropped one spot further to 23rd place running on decade-long fall from No. 1 spot in 2006.
Disappointing figures for trade and monetary scales along with increasing stiffness of bureaucracy and red tape are factors of this decline. With over 180 new federal laws to comply for business with annual costing of nearly US$ 80 Bn following the revival of the financial and auto industries that are still recovering from the great recession things don’t look too bright. Moreover, with growing government intervention in the health and housing finance markets Trump’s potential ideas to levy added taxation on foreign imports will certainly not be an answer to the problems.
Unlike the US, one country has a completely different approach towards its economic challenges and has been performing quite well on Forbes ranking. Sweden is a country that has moved up healthily on the list to become one of the top business-friendly countries of the world. In recent past, the country revised its economic policies and budget self-restraint laws transforming the prevailing business structure of the country. The government of the country has reduced disability and unemployment benefits to promote employment.
Reducing the benefits will allow for tax relaxations. In 2005, it scrapped off the inheritance tax and following years saw the wealth tax get eliminated. On the other hand, taxes that are paid as a profit percent have been reduced as well.
Summary: The US drops further as Sweden gains more point as a top business friendly country