What It Means

Trump takes the presidency, Republicans take the senate, and here’s a first crack at what it means for businesses.

Good Morning!

Here are today’s highlights:    

• Venture for America sought to revitalize cities but always had a flawed business model.

• Murray McCory co-founded JanSport and revolutionized school life for millions. 

• Bernie Marcus co-founded Home Depot, where more than 3,000 of the company’s original employees became millionaires.

THE ELECTION

The Wall Street Journal has a first take on what Trump’s win means: “The new administration of President-elect Donald Trump is poised to make a number of changes affecting the economy, business, markets, the environment, and America’s foreign policy. While Republicans won control of the Senate, the House remained up for grabs, and a Democratic victory in that chamber could throw up obstacles to Trump’s agenda. Here’s a look at what Trump’s win means for immigration, taxes, business, foreign policy, healthcare, energy, and the environment.”

• “Trump’s election makes tax cuts likely. He campaigned on a series of tax-cut slogans—no tax on tips, no tax on overtime, no tax on Social Security benefits. The proposals come atop Trump’s plans to extend the tax cuts he signed into law in 2017 and are scheduled to expire at the end of 2025.”

• “Congressional Republicans have been focused on extending the main pieces of the 2017 law: the lower rates, larger standard deduction, narrower estate tax, bigger child tax credit, and a 20-percent deduction for closely held businesses. Extending those parts would shrink federal revenue by more than $4 trillion over a decade, and Republicans are divided over whether they can do all of that.”

• “Broad-based tariffs promised by Trump would likely hurt economic growth and worsen inflation, economists say. That kind of slowdown would reduce S&P 500 profits by a middle single-digit percentage, though not uniformly. Retailers, car manufacturers, and makers of semiconductors and other tech hardware would likely be among the hardest hit, said Kurt Reiman, co-head of ElectionWatch at UBS Global Wealth Management.”

• “Businesses in many sectors would be affected by Trump’s immigration plans. Agriculture, retail, and leisure-and-hospitality companies would likely be hit hardest if a crackdown targets immigrants holding lower-skilled jobs, said Gregory Daco, chief economist at Ernst & Young. Limiting legal immigration of people working in higher-skilled positions would more likely hurt the financial, technology, and healthcare sectors. Curbing immigration also would likely drive inflation higher by shrinking the labor supply.” READ MORE