This presentation looks a issues facing the United States. The presentation will include key stats as reference point as United States changes from a Democratic led government to Republican government in November 2016.

1. UNITED STATES
TRANSFORMATION –
TRUMP ERA BEGINS
BY: PAUL YOUNG, CPA, CGA
NOVEMBER 10, 2016

2. DISCLAIMER
• This presentation looks a issues facing the United States. The presentation will include key stats as
reference point as United States changes from a Democratic led government to Republican government
in November 2016.

3. PAUL YOUNG - PRESENTER
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

4. AGENDA
• USA Economy
• What is required?
• Election issues

5. USA / GDP
• Higher consumer spending and a rebound in hiring show the economy snapped back to life in the spring and a
report card on the nation’s growth this week is likely to offer undeniable proof. But that doesn’t mean U.S.
growth is strong enough to satisfy the Federal Reserve.
• The Fed is expected to stand pat and leave its benchmark short-term interest rate near zero after bank VIPs
meet on Tuesday and Wednesday to survey the economic landscape. Yet before and after the two-day
meeting, a score of indicators including second-quarter GDP are forecast to show the U.S. remains on a stable
growth path.
• What most worries the Fed is weak corporate investment amid a squeeze on profits and the unsettled nature
of the global economy in the wake of the shock vote by Britain a month ago to exit the European Union. The
central bank seems to want more time to gauge the fallout before raising its short-term rate.
• Source: http://www.marketwatch.com/story/gdp-other-vital-signs-show-us-economy-stable-even-if-fed-not-
convinced-2016-07-24

6. WHAT IS REQUIRED• Environmental
• Balance approach to supporting clean technology as well as carbon based business
• Joint agreements with Canada and Mexico on water and land management
• Reform government spending
• Emphasis on value for money
• Reducing the size of government
• Public Safety
• Refine immigration policies
• Investment in national defense and public safety (local, state and federal agencies)
• Economic Polices
• Bank reforms
• Trade deals (fair trade)
• Key infrastructure investments in ports, rails, pipelines
• Key investment in education including skill trades
• Tax Reforms
• Corporate Tax Code streamline
• Corporate Tax rates cuts from 39% to 30% over next four years
• National consumption tax of 3-4% that should be harmonized with state, county, city sales taxes
• Adjusting sales collection to match eCommerce growth
• Restructuring Obama Care, especially co-pay options
• R&D reforms
• Sign on to OECD tax avoidance deal

7. ELECTION ISSUES FOR 2016
• Jobs
• Income inequality
• Taxation
• Trade
• Public Safety
• Immigration
• Infrastructure
• Education
• Healthcare

8. CURRENT STATE / GDP
• The U.S. economy grew at its fastest pace in two years
in the third quarter as a surge in exports and a
rebound in inventory investment offset a slowdown in
consumer spending.
• Gross domestic product increased at a 2.9 percent
annual rate after rising at a 1.4 percent pace in the
second quarter, the Commerce Department said on
Friday in its first estimates. That was the strongest
growth rate since the third quarter of 2014 and beat
economists' expectations for a 2.5 percent expansion
pace. Business investment improved last quarter,
though spending on equipment remained weak.
• Despite the moderation in consumer spending, the
third-quarter rise in growth could help dispel any
lingering fears the economy was at risk of stalling.
Over the first half of the year, growth had averaged
just 1.1 percent.
Source - http://www.cnbc.com/2016/10/28/us-advance-
q3-gdp.html

9. TRUMP PLAN / RE-PATRIATION OF CASH
• President-elect Donald Trump’s campaign proposal to slash taxes
on cash U.S. companies have stashed outside of the country
could benefit the tech industry most of all.
• Companies like Apple, Microsoft, and Google are among the top
holders of over $1 trillion of cash held outside of the country. The
build-up is largely the result of the companies’ efforts to avoid
paying taxes—including the 35% U.S. corporate tax rate—on the
money in any jurisdiction.
• But Trump has proposed slashing the rate to repatriate the
cash to 10%. A similar temporary rate cut to 5.25% under
President George W. Bush in 2004 prompted companies to bring
back $312 billion. To be sure, Trump has not discussed his tax
plans extensively since winning the election and might not
actually go through with the repatriation rate cut plan.
Source - http://fortune.com/2016/11/09/apple-google-trump-tax-
break/
Summary:
• There has been a benefit when Bush
instituted the change in 2004.
• Weak economy does not guarantee
money will be spent on capital
equipment

10. UNITED STATES / WAGES
• Source - http://www.tradingeconomics.com/united-states/wage-growth
• The US extended its record
private sector hiring streak in
October as wage growth
accelerated to its fastest pace
since 2009, underscoring the
solid jobs market as Americans
prepare to go to the polls on
Tuesday.
Source:
https://www.ft.com/content/4cb1fd
b6-a28b-11e6-aa83-bcb58d1d2193

11. EMPLOYMENT / OCTOBER 2016
http://www.bls.gov/opub/mlr/
• Jed Kolko, chief economist at Indeed,
described the data as very strong, with
the important caveat that “the labor
market is still not what it was before the
recession. Most of these measures are still
below where they were in the early
2000s.”
• The data may provide some of that
evidence. The U-6 rate, a broad measure
of unemployment that includes part-time
workers who would like to be full-time,
fell to 9.5 percent, its lowest level since
the recession. The labor-force
participation rate was 62.8 percent in
October, almost flat from 62.9 percent the
previous month. The biggest job
expansion came in professional and
business services, followed by health care
and financial activities.
Source - https://www.washingtonpost.com

12. SUMMARY / SEPTEMBER 2016
• Sales at U.S. retail stores rebounded in September, with auto dealers and gas stations racking up the biggest gains, in a sign consumers are
still spending enough to keep the economy on a slow but steady growth path. Retail sales have grown more slowly for a year and a half,
partly because much cheaper gas allowed Americans to save on fuel. Yet shoppers are still frugal, seeking out deals and relying more on
cheaper Internet sites such as Amazon AMZN, -0.76% rather traditional store-front retailers such as Macy’s M, -3.34% - Source:
http://www.marketwatch.com/story/us-retail-sales-climb-06-in-september-2016-10-14-81033311
• Years of increased hiring and a slow acceleration in worker pay have laid a foundation for steady household spending. While third-quarter
purchases will probably fall short of the vigorous pace from April through June, the broad-based pickup across the retail spectrum shows
household demand may be gathering pace. Source: https://www.businessoffashion.com/articles/news-analysis/us-retail-sales-rose-in-
september-by-the-most-in-three-months
• Friday’s retail-sales report showed sales rose last month across the majority of segments, though it didn’t track spending on most services,
including health care and housing. Spending at restaurants and bars jumped 0.8% from August, the largest one-month jump for the
category since February. Americans last month continued to shift their spending to e-commerce platforms likeAmazon.com from
traditional brick-and-mortar retailers. Sales in the nonstore category, including online retailers, were up 11% in the first nine months of
2016 compared with a year earlier. Sales at department stores were down 4.8% over the same period. Sales at electronics and appliance
stores fell 0.9% in September despite the release ofApple Inc.’s new iPhone 7. The release of new iPhone models in September 2015 had
coincided with the only monthly sales increase for the electronics category during the second half of last year. But Ms. Rosner said a
delayed sales boost could materialize in the coming months. Source: http://www.wsj.com/articles/u-s-retail-sales-rose-0-6-in-september-
1476448594

13. RETAIL SALES BY KEY SECTORS
Source:
https://www.census.go
v/retail/marts/www/m
arts_current.pdf

14. ECOMMERCE – ONLINE / BUSINESS MOBILITY
• Mobility will continue to shape its growth.
More and more businesses today will keep on growing through mobility. The introduction of new phone apps and ecommerce strategies makes mobility
a winning breakthrough! Can you imagine how far we can still reach by the year 2020?
• Online retailers will use the comfort of ecommerce mobile webs.
• Every marketing channel will be excited to bring your business in a higher level. As for today’s online marketing trends, accessing online stores via mobile browsers will be
easier. Ecommerce using mobile browser is one of today’s tool to unlock your business growth.
• Online stores will leverage its products with various innovating trends.
• Experts have forecasted that ecommerce will give a healthy boom. Mobile browsers will get better and better while online retailers will create more profound online stores
with competitive products for customers.
• Social Media and Mobility will be BIG Hit together.
• Facebook, Pinterest, Instagram, Twitter, Tumblr, and others will continue to pave ways on creating super effective strategy on promoting your products and services on the
market. Social media nowadays (both paid and organic strategies) can reach the right target audience, thus resulting to conversions and sales.
• Business Owners will strengthen their Technology Solutions
• Of course, business owners will be more informed and curious on finding the best IT solutions for their business. The more information they need to handle, the more tools
they would check and try. They will be more updated with what’s trending and what will bring new opportunities for their growth.
Source: http://launchtechus.com/2016/10/14/5-exciting-ecommerce-trends-that-will-impact-your-business-mobility/

15. USA HOUSING PRICES
http://www.builderonline.com/money/economics/us-house-
price-index-inches-up-in-august_o
• U.S. house prices rose in August, up 0.7 percent on a seasonally
adjusted basis from the previous month, according to the
Federal Housing Finance Agency (FHFA) monthly House Price
Index (HPI). The previously reported 0.5 percent increase in
July remained unchanged.
• The FHFA monthly HPI is calculated using home sales price
information from mortgages sold to, or guaranteed by, Fannie
Mae and Freddie Mac. From August 2015 to August 2016,
house prices were up 6.4 percent.
• For the nine census divisions, seasonally adjusted monthly
price changes from July 2016 to August 2016 ranged from no
change in theWest North Central division to +1.2 percent in the
New England division. The 12-month changes were all positive,
ranging from +3.3 percent in the Middle Atlantic division to
+7.9 percent in the Pacific division.
Source - http://www.fhfa.gov/

16. TRADE / SEPTEMBER
• The U.S. Census Bureau and the U.S. Bureau of Economic
Analysis, through the Department of Commerce,
announced today that the goods and services deficit was
$36.4 billion in September, down $4.0 billion from $40.5
billion in August, revised. September exports were $189.2
billion, $1.0 billion more than August exports. September
imports were $225.6 billion, $3.0 billion less than August
imports. The September decrease in the goods and
services deficit reflected a decrease in the goods deficit of
$2.6 billion to $57.5 billion and an increase in the services
surplus of $1.4 billion to $21.1 billion.
• Year-to-date, the goods and services deficit decreased $9.2
billion, or 2.5 percent, from the same period in 2015.
Exports decreased $60.5 billion or 3.5 percent. Imports
decreased $69.7 billion or 3.3 percent.
http://www.bea.gov/newsreleases/international/trade/tradne
wsrelease.htm