Trump's interview with the New York Times yesterday is quite revealing in this regard, and very encouraging. Here's the money quote from Trump:
I got a call from Tim Cook at Apple, and I said, ‘Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here.’ He said, ‘I understand that.’ I said: ‘I think we’ll create the incentives for you, and I think you’re going to do it. We’re going for a very large tax cut for corporations, which you’ll be happy about.’ But we’re going for big tax cuts, we have to get rid of regulations, regulations are making it impossible. Whether you’re liberal or conservative, I mean I could sit down and show you regulations that anybody would agree are ridiculous. It’s gotten to be a free-for-all. And companies can’t, they can’t even start up, they can’t expand, they’re choking.
This is extremely encouraging. Obama's approach to keeping jobs in the U.S. was to penalize corporations for doing inversions. Trump's approach is to create incentives—lower taxes and reduced regulatory burdens—for corporations to relocate here, to bring jobs back. Obama preferred the stick approach, while Trump appears to favor the carrot approach. Guess which one works better? It's like with capital controls: if a country won't allow capital to leave, it will never come in the first place. The best way to attract capital is to assure the owners of capital that they can take their money out whenever they want, with no penalty, and with no losses from devaluations and/or inflation in the meantime.
Trump is a businessman, and he understands how businesses work. He understands that incentives are important. Obama never understood this, and that's one big reason why the economy has been so weak for the past 8 years. I'm starting to get very optimistic about the future.
UPDATE: Matt Ridley, always worth reading, weighs in with similar thoughts here.