Economists surveyed by The Wall Street Journal say President Donald Trump has had generally positive effects on U.S. economic growth, hiring and the performance of the stock market during his first year in office. The professional forecasters also predicted 2018 would see solid growth and a continued decline in the jobless rate. One factor: the tax cuts signed into law by Mr. Trump in December, which most economists say will boost the economy for several years at least. https://www.wsj.com/articles/econom...d-for-u-s-growth-hiring-and-stocks-1515682893
On average the economy has done significantly better under democratic administrations. Huge deficit spending, however, will definitely goose the economy. Initially in real terms, and with time as the deficit spending circulates in the economy the gains shift from real to nominal. Almost Everyone will feel richer even though many are not significantly so. Political rising tides lift some boats much more than others. The Trump tide will put the 1% in the Bay of Fundy, the middle class on the Gulf Coast, and the poor in the Lesser Antilles.
Right. What they don’t tell you is the inflation that typically comes after larger tax cuts and how that acts as a tax on the non-investor class.
I’ll give the trump effect on stocks but growth and jobs, no. Our growth is very much tied to an improving economy in Europe. It’s nice to have healthy trading partners again and Trump has been a wet blanket on jobs.
tax cuts have been followed by revenue growth after the mellon kennedy Reagan and Bush tax cuts. How can you blame inflation on deficit spending if the money is borrowed? Seriously..... on what basis are you making that claim considering the govt borrows the money. We were told that the reason govt borrows money is to avoid inflation. I could see spot inflation in some goods and services but the systemic inflation we have is most likely caused by the FEDERAL RESERVE creating trillons of dollars and depositing it in members accounts or wherever else they place it. If you wish to blame the increased revenues on inflation... which may be true you should compare the increase revenues vs money created by the Federal Reserve and determine the correlation. If you argue deficit is the cause. Then great... lets cut income taxes completely.
Don't know anything about the Morgan cuts just four years after income tax became legal. That was a different time. In modern times every major cut has been followed by nominal, revenue growth. Why would it not? Revenue growth comes from dumping large amounts of money into the private sector, i.e., spending increases, not supply-side tax cuts. No exceptions! But huge reduction and compression in the upper brackets lead to monstrous deficits, made far worse by spending increases, and growing wealth disparity which has compounded over the years!. That will happen in the Trump cuts as well. These cuts, as is almost everything Trump has down, are modeled after Ronald Reagan's administrations giant, supply side cuts.. Expect a very similar result. Wealth disparity is going to accelerate like Chuck Yeager's rocket sled. There is one cut that economists believe was actually responsible for a small net, tax revenue increase and that was the Kennedy cuts which were focus on the demand side. The Reagan cuts were focused on the supply side, of course. Overall there was a revenue increase due to exiting from recession, but the bulk of the revenue increase came from monstrous deficit spending -- tax cuts made the deficits worse. Deficit spending boosts revenues. Expect results very similar to Reagan's with regard to the Trump cuts. Deficits will be "bigly" ginormous and "huge" , "believe me", "everyone says so."