The Bank of Montreal recently used the cult-classic Rocky Horror Picture Show to examine how the election of either Donald Trump or Hillary Clinton could affect the economy.
With the U.S. presidential election just over two weeks away, BMO Nesbitt Burns chief economist Douglas Porter released a report Friday looking at the economic issues raised during the campaign and how the markets could react to a Trump or Clinton presidency.
READ MORE: Hillary Clinton looking beyond Trump to taking Republican control from House
-
![]()
Donald Trump telling supporters not to believe poll numbers showing him well behind -
![]()
Hillary says she was surprised by Trump’s answer of not accepting results, calls him sore loser -
![]()
Bernie Sanders is quiet because wikileaks is revealing what was said behind his back: Trump -
![]()
Another woman comes froward alleging Trump sexual assaulted her -
![]()
‘All of these liars will be sued’: Trump on sexual assault accusers -
![]()
‘The system is totally rigged’: Trump continues attack on US electoral process -
![]()
‘Who knows the code better than me?’: Donald Trump on lowering taxes
The Democratic nominee has a double-digit lead according to some polls against Trump, and the embattled GOP nominee’s path to the White House is looking increasingly difficult in the final weeks of the campaign. So with Halloween landing between now and the election, BMO used Rocky Horror Picture Show to simplify things.
“Heading into the final two weeks (mercifully), here’s a quick recap of what could be affected most by the election results (with a Rocky Horror theme reflecting the lack of decorum, at least from one candidate),” Porter writes.
Trade: ‘It’s just a jump to the left…’
WATCH ABOVE: Trump calls NAFTA ‘the worst trade deal maybe ever signed, anywhere’
In a reference to the featured Rock Horror song “The Time Warp,” Porter outlines how Clinton and Trump have campaigned on staunch protectionist policies that have included tearing up or disavowing major trade deals – which also affect Canada – like the North American Free Trade Agreement (NAFTA) and the Trans-Pacific Partnership (TPP)
“By far the most remarkable, and troubling, aspect of this year’s election campaign from an economics standpoint was the lurch toward protectionism by both parties,” Porter said.
Clinton has reversed course on TPP and said she would no longer support it despite calling it the “gold standard.” She has also talked about revisiting NAFTA.
READ MORE: Could Donald Trump pull the plug on NAFTA? It’s not as easy as he says
Meanwhile, Trump has strongly opposed the TPP, calling it a “bad deal” and said he would renegotiate the NAFTA treaty with Canada and Mexico to secure more favourable terms for the U.S.
“Of course, many candidates have talked tough on trade during the campaign, and then quickly moved back to middle ground after the election,” Porter said.
Taxes: ‘…and then a step to the right’
WATCH ABOVE: Hillary Clinton offers to ‘translate’ Donald Trump’s answer on taxes
On the issue of taxes, while both candidates say their plans will help the middle class they differ on how they’ll affect wealthier Americans.
“Trump’s plan calls for deep cuts, while Clinton will raise rates on the very wealthy (by 4 ppts on incomes above $5 million) and increase social security charges on upper incomes,” Porter writes. “Trump has also pledged to slash corporate tax rates.”
The Fed: ‘Dammit Janet’
A reference to both the famous Rocky Horror musical number and Federal Reserve Chair Janet Yellen, Porter said the Fed has managed to work its way into the election cycle.
READ MORE: How the loonie could react to a President Clinton or President Trump
Trump has vowed to replace Yellen if elected and in September criticized the Federal Reserve for keeping interest rates low for political reasons saying Yellen should be “ashamed” of herself.
“For her part, Clinton has expressed no concerns about monetary policy, but the Democrats have fretted about the lack of diversity at the Fed,” Porter writes.
‘Wild and Untamed Thing’: will Donald accept the election outcome?
-
![]()
Clinton says Trump is threatening democracy by refusing to say if he’ll accept election results -
![]()
Trump makes election campaign history with allegations of rigging, comments about election outcome -
![]()
Trump promises to accept election results… if he wins. -
![]()
Michelle Obama addresses Trump claiming election is ‘rigged’ -
![]()
President Obama calls Donald Trump’s claim that he won’t accept election results ‘dangerous’ -
![]()
Donald Trump says he will ‘accept clear election result’ if result is not ‘questionable’ -
![]()
Clinton calls Trump response to conceding election ‘horrifying’ -
![]()
Presidential debate: Donald Trump refuses to say whether he will accept the result of the election
In an homage to one of the final musical acts, Porter looks at how Donald Trump has upended a pillar of American democracy by refusing to say whether he would accept the outcome of the Nov. 8 election.
Trump has since stated he would accept the election results “if I win” a statement that continues to roil high-ranking republicans. Clinton called the comment “horrifying.”
“We can only hope that we don’t head into a Time Warp, falling back to the post-election uncertainty of 2000,” Porter writes.
Comments