One of the world’s leading voices on business believes better times could be round the corner for the United States economy despite uncertainty over North Korea.
Steve Forbes – a dyed-in-the-wool Republican who ran twice for president – spoke to editors and publishers of the many versions of the magazine around the world, including Forbes Africa. The conference, at the Forbes Media center on Fifth Avenue in New York, was part of the 100-year celebrations of the world-famous business magazine. It was Forbes’ chance to show his stripes as the eternal optimist in US capitalism.
“I think you will see the US economy showing signs of life over the next three months, you will see a growth rate of more than 3%, maybe more,” says Forbes.
“I think there will be a big tax cut soon, there has to be. Republicans may not be the fastest thinking people in the world, but half the senate is up for re-election and not too many of them want to end up as an Uber driver.”
Forbes believes that the politicians could come up with a vote-winning cut in corporate tax, from 38.9% to 18%, or even as low as 15%. He believes this could stimulate the economy.
“A little growth goes a long way. Bill Clinton survived all of his scandals as president because the economy was growing. By contrast, Richard Nixon was kicked out because the economy was struggling.”
On the trade front, the threats from President Donald Trump to slap tariffs on everything to protect business may not come to pass.
“I think the reality will be much gentler than the rhetoric, especially if the economy is growing,” says Forbes.
Yet the Editor-in-Chief of Forbes believes the US will be tough against the nuclear threat of North Korea.
“If they attack us they know they will be obliterated no matter what happens. The feeling is strong here that North Korea does not take us seriously. The US will increase sanctions, including cutting North Korea out of the world banking system. We have had sanctions before and they hurt North Korea.”