More Stick Than Carrot At Davos

AVOS saw new excitement this year. The annual jamboree of world corporate and political leaders, who meet in the scenic Swiss alpine village annually, got a taste of the new world order as defined by Donald J Trump.

- GURBIR SINGH

The US is no more interested in leading the world through crisis and turmoil. It is 'America First'. Self-interest will be the watchword. If you help the US get fatter and richer, you are an 'ally'. If you don't, well... you are 'enemy', 'terrorist', or 'tariff-worthy'. Take your pick.

Trump did not make it to Davos; he was virtually there on the big screen. And world leaders tripped over each other to hear him. When he spoke, he drew heavy applause.

But his message to Davos and the world was tough stuff. The carrot and the stick, but mostly the stick. He said he would lower taxes within US borders to 15 from the current 21 percent, to help crank up production and business at home. For the world elites, there was a warning: "if you don't make your product in America, which is your prerogative, then very simply you will have to pay a tariff."

The third step: lower energy costs. In other words: drill, baby, drill. The US, already the largest oil producer, would swamp the world with higher output; and Trump believes he can make a deal with OPEC to abandon production cuts. These steps would reduce energy prices, leading to cost of living becoming cheaper in the US.

And finally: with inflation under control, Trump would demand the Federal Reserve lower interest rates, which would reduce borrowing costs for businesses and consumers.

Will 'Trumpism' work?