Moody's: Donald Trump's economic plan means fewer jobs
WASHINGTON -- A new economic analysis finds that Donald Trump's economic plans would produce a lengthy recession and millions of job losses.
The study by Moody's Analytics, an economic research service, predicts there would be 3.5 million fewer jobs and unemployment rate as high as 7 percent at the end of Trump's four-year term -- if all of his stated policies become law.
The rate is currently below 5 percent.
Trump's plans would "diminish the nation's growth prospects," according to the report released Monday.
"Broadly, Mr. Trump's economic proposals will result in a more isolated U.S. economy. Cross-border trade and immigration will be significantly diminished, and with less trade and immigration, foreign direct investment will also be reduced," the report found. "While globalization has created winners and losers in the U.S. economy in recent decades, it contributes substantially to the ongoing growth of the U.S. economy."
High income households would benefit the most from Trump's economic proposals, with the bulk of his proposed tax cuts going to those at the very top of income distribution, the report found.
"Mark Zandi, the lead author of the report, was an economic adviser to Republican Sen. John McCain's presidential campaign. He also was a big defender of President Barack Obama's stimulus package.
Moody's also is expected to release an analysis of Democrat Hillary Clinton's economic policies.