PSU law professor talks Clinton, Trump economic policies

Penn State Law professor Samuel C. Thompson Jr. self-published a book titled “The Clinton vs. Trump Debate on Economic Growth: A Citizens’ Guide to the Issues.”

On Monday afternoon, Thompson delivered the second of the three special lectures meant to provide voters with an overview of the economic policy proposals of presidential candidates Democrat Hillary Clinton and Republican Donald Trump.

In the lectures, Thompson discusses chapters from the book, which are available on Penn State Law’s website.

On Monday, Thompson went over chapters 12-16 — covering topics such as the Great Recession, the budgetary policies of Clinton and Trump in relation to the deficit and Social Security and Medicare.

Thompson discussed the reasons for the financial crisis that began in 2007, the worst recession since the Great Depression in the 1930s.

In an attempt to prevent future financial crises, Congress enacted the Dodd-Frank Act in 2010.

Thompson said Clinton is a strong supporter of the provisions of the Dodd-Frank Act, while Trump has taken virtually the opposite position.

One requirement of the Dodd-Frank Act that Thompson discussed was the Volcker Rule, which prohibits banking entities from engaging in proprietary trading.

The rule cuts back on what activities banks can engage in, but it doesn’t go as far as the Glass-Steagall Act.

The Glass-Steagall Act, established in 1933, prohibited commercial banks from engaging in investment banking. It was repealed in 1999 by President Bill Clinton.

Sen. Bernie Sanders, I-Vt., who was Clinton’s primary challenger, has expressed support for that separation, Thompson said.

Trump has also said at times that he would want to re-enact Glass-Steagall, Thompson said. Clinton, on the other hand, does not support re-enacting it.

Thompson said she may be reluctant to re-enact something that her husband abolished, though he said that’s just speculation on his part.

Thompson said he thinks it would make sense to go back to Glass-Steagall.

The Great Recession came within 10 years of the abolishment of the act, Thompson said, adding that he fears there’s a connection between the two events.

This story was originally published October 31, 2016 at 7:43 PM with the headline "PSU law professor talks Clinton, Trump economic policies."