AntonToo
Diamond Member
- Jun 13, 2016
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yea, but when you throw liquidity where there is none. Purpose of tax plan is to give corporations more money, but they already have it to begin with.The reason economy is ok is because Trump hasnt had any effect on it yet. Economists says tax plan will be disastrous. Try to find an economist who says otherwise.That is exactly right. Trump's tax cuts and relaxing of environmental regulations will certainly supercharge the economy. In the short term. In the long term I'm not optimistic.
Personally, I'm doing just fine in the market but my son has seen a big increase in Obamacare costs directly attributable to Trump. That will more than offset the increased tax return he'll get so Trump has not helped him at all.
Additionally regulations dont really effect employment.
Demand is primary factor in employment.
I think it is MUCH tougher to find an economist that would say that tax-cuts-on-credit are not going to have expansionary effects until the long term bills come due.
Very tough to throw liquidity at economy and not actually get any growth.
It is quite simple - in short and mid term, less taxes will be paid, more debt will be accrued and more economic activity will take place.
In the long term, taxes will have to be raised and/or government spending slashed to pay for these bills and as a result less economic activity will take place.
Corporations do not just put these tax-liability savings into a safe, they distribute it to the shareholders, who then spend it elsewhere.
Except if you are Obama, who screwed the shareholders...like at GM.
Dummy, this is what most shareholders experienced during Obama's stay in office: