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On balance, the people who run U.S. companies like the Age of Trump, The Economist writes in its cover story.
The big picture: "Bosses reckon that the value of tax cuts, deregulation and potential trade concessions from China outweighs the hazy costs of weaker institutions and trade wars."
- "Bosses reckon that the value of tax cuts, deregulation and potential trade concessions from China outweighs the hazy costs of weaker institutions and trade wars."
- The key point: "The financial fireworks on display in the first quarter of this year suggest that this vision is coming true. The earnings of [public companies] rose by 22% compared with a year earlier; investment was up by 19%."
- "But ... the investment surge is unlike any before — it is skewed towards tech giants, not firms with factories."
- Why it matters: "Republicans are right that tax cuts and wise deregulation can boost firms’ competitiveness. But little progress is being made on other priorities, including repairing infrastructure, ensuring small firms are not squashed by monopolies and reforming the education system."
- The takeaway: "A strategy that assumes revenues but not expenses rarely makes sense."