Nationally known economist Robert Genetski believes if President Donald Trump continues to push to implement classic economic principles, the economy will improve.
The Saugatuck, Michigan-based expert, known for his conservative views, addressed the polarization of the country, the stock market, tax cuts and health care. The economist and author spoke at the 14th Annual Economic Breakfast hosted by Cornerstone National Bank & Trust Co. at the Cotillion Banquet Facility in Palatine where about 275 business leaders were in attendance.
Genetski believes the economy will continue at a pace much as it is now. He is predicting that over the next year we will see 2.5 to 3 percent growth, inflation will be about 2 percent and housing prices will go up 5 percent. He predicts a 9 percent increase in the stock market.
He added that these figures will drastically improve if Congress approves Trump's proposed tax cut.
Genetski said there are positives taking place. "President Trump has deregulated a number of government regulations and we see some life coming into the economy. We see the economy picking up," Genetski said.
The economist bashed the current health care and tax systems. He firmly believes that less government control is better. "The health care system that we have now is the most expensive and the most inefficient system," adding that 19 percent of our income is spent on health care. He believes a free market is the answer.
"Our tax system is also inefficient. We are chasing companies away from the United States," he said.
Meanwhile, he suggested that investors stay away from long-term fixed rate securities. He added that the stock market is 18 percent below its fundamental value.
Genetski is optimistic that we are returning to classic economic principles and will continue to see improvements in the economy. And if that happens, he expects we would see unity in the U.S.
He said Trump has created polarization, mainly because he is not a politician who has been polished and trained to communicate. Instead, he is a businessman. "If you are a businessman, especially a businessman from New York, you're results oriented," he said. "Trump says exactly what he thinks. But his instincts are right," said Genetski, to Cornerstone's guests who received a copy of his most recent book, "Rich Nation Poor Nation: Why Some Nations Prosper While Others Fail."
Participants said they enjoyed the event. "His forecast seems to be on target," said Joseph Folisi, who works at Wipfli CPA firm in Palatine. "His predictions are positive, even without the tax cut," he said.