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Challenges facing a new administration

Challenges facing a new administration

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Page 1: Challenges facing a new administration

Challenges facing a newadministration

Page 2: Challenges facing a new administration

How will the new president unite thecountry?

2© Grant Thornton LLP. All rights reserved.

Address the root cause of many Americans’

frustration — the economy.

People believe they’re working harder but can’t get ahead.

• They see the wealthy as more than recovered from the

recession.

• They aren’t optimistic about their children’s opportunities or the

new president’s ability to change things.

Page 3: Challenges facing a new administration

An election for the agesTwo of the most unpopular candidates in history

Favorable: 43.1%

Unfavorable: 53.0%

Favorable: 35.4%

Unfavorable: 61.7%

RealClearPolitics Average 9/28–10/20

Hillary

Clinton

3© Grant Thornton LLP. All rights reserved.

Donald

Trump

See where Clinton & Trump

stand on tax

Page 4: Challenges facing a new administration

Direction of the country

Source: RealClearPolitics average 9/15 – 10/8

Right Direction – 30.2%

Wrong Track – 63.4%

2/

We asked…What do you

want from Congress?

Check out our leaders'

responses.

4© Grant Thornton LLP. All rights reserved.

Page 5: Challenges facing a new administration

GDP growth since 2007

-8

-10

-6

-4

0

-2

2

4

6

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Average growth

1976-2006

From 2007 to 2015,

GDP average grew at

less than half that of the

previous 30 years.

Source: US. Bureau of Labor Statistics

5© Grant Thornton LLP. All rights reserved.

Page 6: Challenges facing a new administration

Labor participation rate

60.0

59.0

58.0

61.0

66.0

67.0

68.0

1976 1981 1986 1991 1996 2001 2006 2011 2016

65.0

64.0

63.0

62.0

40-year low

Labor participation

rate is the lowest it

has been in nearly

four decades.

Source: US. Bureau of Labor Statistics

6© Grant Thornton LLP. All rights reserved.

Page 7: Challenges facing a new administration

Unemployment

Source: US. Bureau of Labor Statistics

At height of

recession

10%1-year

average

4.9%

9.7% with shadow

unemployment:

The underemployed

and those who have

given up looking.

7© Grant Thornton LLP. All rights reserved.

Page 8: Challenges facing a new administration

Real median income

Source: US. Bureau of Labor Statistics

$44,000

$46,000

$48,000

$50,000

$52,000

$54,000

$56,000

$58,000

$60,000

1984 1989 1994 1999 2004 2009 2014

Peak

$57,909

2015

$56,516

Wages have been

stagnant for nearly

two decades.

8© Grant Thornton LLP. All rights reserved.

Page 9: Challenges facing a new administration

Net worth has plummeted…for someMedian net worth change 1998–2013

All families -20.8%

Lower class -26.5%

Working class -52.7%

Middle class -19.1%

Top 10% 74.9%

46% of Americans

can't come up with

$400 to cover an

emergency expense.

9© Grant Thornton LLP. All rights reserved.

Source: Federal Reserve Survey of Consumer Finances

Page 10: Challenges facing a new administration

© Grant Thornton LLP. All rights reserved. 10

Addressing the economy would

be a logical first step for the

next president.

Page 11: Challenges facing a new administration

© Grant Thornton LLP. All rights reserved. 11

Think tanks score Trump and Clinton tax plans for

dynamic effect

Stay politically connected — in spite of populism

Industry: All we want from Congress

The Political Pulse informs you about the race to the presidency.Find continuous political analysis, news and commentary on the Political Pulse.

Post-election economic analysis webcast

Page 12: Challenges facing a new administration

© Grant Thornton LLP. All rights reserved. 11

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