Is the President creating a sustainable economy?

Nothing in the universe is permanent. But the Reagan Boom was so awesome that even Clinton rode its coat tails, and now Trump is doing the same.

 

In reality, the correlation between tax rates and GDP growth is tenuous. If at all, tax cuts produce transient boosts in GDP growth, which fizzle out later on. Thus, their effects are not sustainable. This should be evident to anyone, since we have been cutting taxes over and over again since the 60s, but average GDP growth rates currently are, if at all, lower than back in the 60s, when marginal rates were close to 90%, if memory serves me correctly.

 

As I stated on the fist page, expectations of the future is much higher now. There is also less uncertainty. That will boost the economy across the board and VERY sustainable.

That's Post-Keynesian economics (aka, real world economics). In neoclassical economics that's also known as "consumer confidence," though that's not as comprehensive. When Obama tried, he FAILED because he added greater uncertainty right after his economic stimulus package when he introduced OBAMACARE. The economy stagnated by comparison the rest of his 8 years in office.

Steve

 

Haha, Trump and less uncertainty? That must be a joke. His strategy is to keep everyone guessing. Just look at his tariff game. How can companies plan if they don't know whether their product will be hit by a tariff tomorrow in Trump's trade war?

 

Running up higher deficits and debt to eek out a bit more GDP is not sustainable.

It is criminal negligence to run up the debt when the economy is good.

We paid for the irresponsibility of former leaders running up the debt in the last recession, and we will pay more from this leader running up more debt in the next one.

 

It wasn't Obama who gave us austerity and uncertainty with government shutdowns.

And there couldn't be greater uncertainty than the loose cannon we have in the WH.

 

That's definitely the argument the lying liberal media is making. The problem with that argument is the media ONLY gives you the neoclassical economic theories and worse, economists that are trying to help dems win elections after losing election SINCE 2010.

Get a grip on reality. Do yourself a favor and write your dem representatives and tell them to move toward the center instead of moving further left where the number of radical voters keeps getting SMALLER AND SMALLER.

Steve

 

Did we? I thought the financial crisis revolved around bad credit by underregulated financial predators and their investors more than the national debt.

 

My post was not about the causes of the GR, but our ability to deal with it.

Purportedly because the government was already so deep in debt, Republicans forced austerity measures when they took the House in 2011, which of course is exactly the wrong thing to do when the economy is struggling to deal with a bad recession.

In the next recession, the government will have even less flexibility to deal with it.

 

No, that is the argument I'm making. You're not saying I'm lying, are you?

Why don't you just address the argument instead of baselessly calling out liars?

I didn't say anything about any theories.

We already seen the results of conservative economy theories over the past 35 years.



We'll past time to change and reverse "trickle down".