Economics played a major role in the victory of Donald Trump. Rising income and wealth inequality has meant that median incomes in real terms in the U.S. have been stagnant for four decades and those in the middle income deciles of the income distribution have been squeezed. The causes of this inequality have been blamed on global trade agreements, immigration, and off-shoring. There has also been a hollowing out effect due to technological change – routine jobs such as bank clerks have been computerised – which has had a negative effect on middle class wages. Trump’s constituency is largely comprised of this squeezed middle. The big question about Trump’s economic policy is whether he will stay true to his constituency. If he does, we can expect the rolling back of trade deals, the introduction of tariffs, trade wars with China, and limits on immigration. However, before the world loses sleep over this, we need to remember that Trump is a businessman and his outlandish sugge...