When President Donald Trump’s former economic advisor Stephen Moore advocated for business and corporate tax cuts, former Labor Secretary Robert Reich called B.S.
In a Wednesday night CNN panel with host Erin Burnett, Reich refuted Moore’s claim that “trickle-down economics” and tax plans like the one Trump proposed earlier in the day help middle-class workers.
“The Congressional Budget Office, which is not a friend to Republicans by many means as you saw with the healthcare debate, they say 65 percent of the benefit of cutting the business tax rate goes to workers,” Moore stated.
“I will believe that when you tell me that actually workers have had a raise in real terms over the last 30 years with these big tax cuts, these big trickle down tax cuts that you’ve been advocating for all these years, Stephen Moore,” Reich said, making clear that he and the former economic adviser were acquainted.
Reich went on to describe the wealth of the nation’s richest people and most profitable corporations, claiming “they don’t even know what to do with all their money.”
“Why are we talking about about a corporate and business and wealthy tax cut at a time like these?” he mused.
“Because, Bob, you need businesses for jobs,” Moore retorted.
“You are wrong but one thing that’s very, very fundamental,” Reich responded. “It is the middle income and poor people who actually, through their spending, create jobs.”
“Businesses are not going to invest in new jobs until there are people who are purchasing, that’s one of the problems we have had through the last 25 years, that’s why the recovery have been as sluggish as it has — because the middle class and the poor don’t have any money,” he concluded.
Watch the altercation below, via CNN.