Skewering of Leftist Economic "Conventional Wisdom"

[whell]

Originally Posted by finnbow

I don't doubt that $1.5 trillion in tax cuts for corporations and the wealthy will have some positive impacts for corporations or the wealthy and will trickle down somewhat on the less privileged. The issue is whether this tax package was the right thing to do at the time in terms of equity, the deficit and inflation. A couple of anecdotes don't make it so.

It didn't simplify the tax code or close loopholes, nor will it pay for itself (as promised). What it will do is increase interest rates as well as concern from our creditors about the credit-worthiness of US treasuries (just yesterday China expressed grave concern about US treasuries) and bonds are reportedly entering a bear market. Increased interest rates will ultimately have a negative impact upon the economy. Meanwhile, enjoy your sugar high.

We're clearly beyond anecdotes at this stage, my stubborn friend. The China bond story has also been debunked a bit, now classified as a leak aimed at influencing trade policy rather than any serious concerns over China's US bond holdings. And if bonds are entering a "bear market", it's because there are more attractive investments out there...like stocks.

https://www.ft.com/content/924e4c88-...7-5465a6ce1a00

You claim it won't pay for itself, with your fixed pie economy point of view. Others, including the former CBO Director Douglas Holtz-Eakin, thinks it will. I'll take Mr. Holtz-Eakin's Ph.D in Economics from Harvard - informed opinion on this.