Skip to comments.Trump economy is doing fine, to the chagrin of the dismal science
Posted on 06/11/2018 9:45:01 AM PDT by 2ndDivisionVet
Tax cuts, deregulation and smart trade policies will make America boom
They dont call it the dismal science for nothing.
Remember Paul Krugman predicting the apocalypse in the wake of Donald Trumps election. And now with the economy clipping along at nearly 3%, deregulation and lower taxes reviving manufacturing, and consumers confidently spending again, some two-thirds of private-sector prognosticators see a recession beginning as early 2020.
The new doomsday scenario offered by the Congressional Budget Office and others is that the economy is getting only a temporary jolt from tax cuts and increased government spending, and aggregate demand will tail off.
Much of this has to do with political bias in a profession where it has become fashionable to call the president a demagogue or simply ignorant and irresponsible, and to view with hypocritical disdain any goal for policy he sets.
It is one thing to dislike him but its another thing to ignore years of professional research that predate his ascent. For example, forecast of a coming recession denies that lowering corporate taxes provides more than a temporary jolt to cash flow it also lowers the cost of capital in the United States as compared to other economies.
Nonpartisan research predating the Trump candidacy indicates the 15% cut in taxes on business profits enabled by corporate reforms should increase investment between 7.5% and 15%. And in the current environment of deregulation, the higher figure should more closely apply....
(Excerpt) Read more at marketwatch.com ...
Economists use the same Supercomputers to model the world economy that the Environmentalists use to model the world climate.................
When a Repub is Prez, disaster is right around the corner. When a Dem is Prez, good times are just around the corner.
What’s the problem? Krugman’s prediction rate is 100%. Always has been.
The economy is doing great right now, but the yield curve is getting MUCH closer to inverting, thanks to the Bernanke/Yellen low interest rate policy. Kudlow is certainly smart enough to avoid a recession. No doubt he has seen the signs and is taking steps to prevent it.
Business is cyclical and the fact that there will be a downturn at some point is inevitable. It’s just a question of when. But, as Janet Yellen said, business cycles don’t come with expiration dates so the 2020 is just a guess based on whatever factors the economist chooses to use.
As the old joke goes, economist have successfully predicted thirteen of the last four recessions.
“...taking steps to prevent...”
Government should stay the hell out of business.
Every major economic crisis we’ve ever had has been caused by the STUPID GOVERNMENT.
NOT to the “chagrin of the dismal science. To the chagrin of leftist claimants to the title of Economist, though.
Well, yeah, I agree, but supply-side tax cuts like Reagan’s (and Trump’s) also distort the economy. I suppose it is a necessary evil to try to counteract all the Keynesian BS that the Dems and GOPe throw at us all the time.
Most people have absolutely no idea how much distortions in the economy affect every market, every product, and every consumer. Certainly Krugman and the old Fed bunch don’t get it and never will. Bastiat had it right in 1850, long before Keynes was born.
“...supply-side tax cuts like Reagans (and Trumps) also distort the economy...”
Milton Freidman has said that any excuse to give a tax cut is good.
Reducing taxes keeps more money in the private sector; that is where wealth is created.
And our government shouldn't give over economy to the globalist cabal either.
All income tax cuts are good.
Ideally, taxes should be zero. Starting from a position of high taxes, cuts are good, but are still second-best. There will still be distortions of economic behavior because there are still taxes. Even more so with subsidies.
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