The broadcast claim of the current administration guiding the Ship of State stated that the GDP growth rate was going to be routinely over 3% and perhaps as high as 6%, as a major justification for the sweeping 2017 tax overhaul. The hype employed as "proof" the new tax plan centered about the two FY 2017 quarters of GDP growth just over 3%. Can we say, "Flash in the pan?"
The forecast of the new tax plan was 3% MINIMUM GDP to keep the debt about where it is today to pay for the loss of tax revenue. Then the tax reduction and the trickle down effect of the generous largess of the moguls of industry would increase the spending of the proletariat as their income rose thereby increasing Treasury revenue via the lessened tax.
What could go wrong? How about GDP growth at only 2.3% instead of 3%+ as it turned out for the Orange Clown's first year! Or how about a "market adjustment" with the bull going bearish and the Dow losing 25 to 30% and our next recession hitting its scheduled and routine 10-11 year mark in just a few months in the second or third quarter of FY 2018? What's the Thrump economic forecast today from his tribal sycophants?
"U.S. Economic Growth Slowed in 2017’s Fourth Quarter, Missing Trump’s Targets!
The U.S. gross domestic product, a broad measure of the economy, increased by 2.3 percent in 2017, federal economists reported Friday.
GDP growth slowed in the year’s fourth quarter to an annualized rate of 2.6 percent, breaking a two-quarter streak of growth of more than 3 percent.
The economy grew far faster in 2017 than during the year before, but the slowed fourth quarter growth underscores the challenge President Trump’s administration will have in delivering the growth rates he has promised. Officials had focused on 3 percent GDP growth as proof his economic policies were working, and Trump has said it could go far beyond that target."
More: ~~
U.S. economic growth slowed in 2017’s fourth quarter, missing Trump’s targets ~~
This is like the liberals saying that Obama didn't add 10 trillion dollars to the debt, when actually he raised the debt by 9.5 trillion. Liberals love to use facts when it goes their way, but when REAL facts are presented they run off like spoiled 3rd graders who have peed in their pants. Obama told US that it never again see a GDP over 3%. We still have 7 more years of President Trumps tax breaks, that you liberal will either spend and help the economy and pay down the debt, or return, thus not helping the economy thus paying down the debt both helping President Trump...Damned if you do, damned if you don't, it is nice to see victims of liberalism in such a tizzy.
It's a little early to declare the gop tax cut a failure. I think it will be one, and unnecessarily so, because the benefits of a corp tax cut could have been achieved just by lowering the rate to even less than it is now by just offsetting the added lost revenue by cutting corporate giveaways like credits for plant expansion.
Putting a little more money in the middle class pockets probably helps a little. There's no debate that the EITC increased consumer demand too.
Well, I didn't PRONOUNCE it a failure yet... I share your pessimism! But when will that "Voodoo Economics", as Bush 41 termed it, start to ever work in the real world?
I merely pointed to a fail point in the scheme that has already occurred with the 2017 2.3% GDP and pointed to two other demons looming on the horizon. When the Dow and the S&P take a dump in the middle of Wall Street, the prospects for 3-6% GDP growth reduce exponentially! Hence, the rising debt and some more of this tedious can kicking closer to the cliff's edge!
Unless you have a crystal ball, with all those Socialist Utopian Paradises over in Europe investing in the United States, doesn't seem like in the next couple of years, any crash coming, unless you libtards rise up and try to overthrow this government. Until then I will continue to spend good money that I am getting from the tax breaks back into the economy, thus making President Trump win, again, and again...
It's obvious that the Tax Bill is just another effort to get the biddable to support Trickle Down / Voodoo Economics. This
hypotheses has never been verified multiple times by detached groups of researchers to prove it was an effective economic policy.
In fact most economists dismiss it as the fraud it is.
Does Boosting Supply Create Economic Growth?
"A lot depends on which segment of society gets the tax cuts. Studies show that
tax cuts aren't equally effective in creating jobs. Cuts to lower income families directly translate into increased spending." [
Short Term) "That boosts demand and economic growth. Tax cuts to higher income families are often invested, saved or used to pay off debt. That boosts the stock market and banks, but not retail." [
we are a consumer driven economy]
Conclusion
Economists still debate whether tax cuts lead to increased economic growth over the long-term. The Treasury Department study did mention that, in the short-term and in an economy that is already weak, tax cuts will provide an immediate boost. The NBER study found that tax cuts will create larger budget deficits unless spending is also cut.
Over the long term, and in a healthy economy, this will put downward pressure on the dollar which could ultimately
increase inflation through higher prices for
imports. In time, if inflation is high enough and the economy is strong enough, it could convince the Federal Reserve to initiate
contractionary*** monetary policy, such as higher interest rates. The result of that is slower economic growth."
***"The word '
fiscal' refers to the government's budget, which includes government spending, taxes and transfer payments like welfare or social security.
Fiscal authorities use
contractionary fiscal policy to slow down the economy, which offsets - or reverses - an inflation problem."
So, by the time McConnell and Trump are gone from the political scene, and Ryan has long sense been sent home by the Wisconsin's who finally return to their progressive roots, the damage they have done to our long term economy, and to democracy itself, will be damn by history and those of us who suffered from their misfeasance and non feasence.
