Trump will spread growth to those left out, says his adviser

Anthony Scaramucci, Executive Member of US President-Elect Trump's Transition Team speaking during a panel session on the first day of the 47th annual meeting of the World Economic Forum in Davos, Switzerland, on Jan 17, 2017.
Anthony Scaramucci, Executive Member of US President-Elect Trump's Transition Team speaking during a panel session on the first day of the 47th annual meeting of the World Economic Forum in Davos, Switzerland, on Jan 17, 2017.PHOTO: EPA

DAVOS • Mr Donald Trump's incoming administration will push through infrastructure spending, a tax overhaul and cuts in regulation to spread economic growth beyond a concentrated faction of "global elites", one of his economic policy advisers has said.

SkyBridge Capital founder Anthony Scaramucci told a panel at the World Economic Forum (WEF) in Davos that 97 per cent of the world had not benefited from the global financial recovery, and recalled the "desperation" felt by many who attended Trump rallies during the presidential campaign.

After Chinese President Xi Jinping warned the WEF meeting yesterday that "no one is a winner in a trade war", Mr Scaramucci said the new United States administration wants only "free and fair trade".

Citing a concentrated group of elites who had not recognised economic reality, Mr Scaramucci said the incoming US president will focus on spreading economic benefits through growth.

The Trump administration would propel growth with a "fairly dynamic" infrastructure policy, tax policy that is "a lot more simple" and a fast-track "executive- order rollback" of regulation, Mr Scaramucci said.

He also said that the US and China had "common cause" and that, even though there was a need to reassess trade policy, the Trump administration was not seeking a trade war. "What we would like to have is a process of free and fair trade," he said.

"All we are asking for now is to create more symmetry in these trade agreements," Mr Scaramucci said.

US trade relationships had "hollowed out American manufacturing, it has hurt the American middle class, and it has crippled the American working class", he said.

Mr Trump has sparked concern in Europe over his views on Nato, saying the military alliance is obsolete. Mr Scaramucci said Mr Trump's views about Nato reflect how the world has changed, but should not be interpreted as meaning that it needs to be consigned to history.

"Nato is working, but there are things about it that need to change and there are parts of it that are, in the words of Trump, 'obsolete'," Mr Scaramucci told the audience.

"We have to think about changing the (Nato) treaty to front face the 21st and 22nd centuries," Mr Scaramucci said, adding that the focus should now be on finding common cause with Russia.

"Let's try to find a way to get along better (with Russia)."

BLOOMBERG, REUTERS

A version of this article appeared in the print edition of The Straits Times on January 18, 2017, with the headline 'Trump will spread growth to those left out, says his adviser'. Print Edition | Subscribe