Quantcast
Connect with us

Paul Krugman ruthlessly mocks Trump for his failed tax cuts: ‘The stock market doesn’t seem too happy’

Published

on

While President Donald Trump’s personal scandals and the ever-increasing number of criminal investigations arrayed against him dominate the news, the stock market has faced extremely tumultuous headwinds, wildly rising and falling, often by hundreds of points, each day. Though, as always, this reflects countless factors, economist Paul Krugman argued that its movements can tell us something about Trump’s presidency.

“Well, the stock market doesn’t seem too happy,” he wrote in a new Twitter thread. “Does this mean recession? No. But it does look as if Trumpophoria is fading, which makes this a good time to ask how that tax cut — the only major legislation Trump will pass — is going.”

Many defenders of the president’s policies — and even some of his critics — have pointed to the elevated growth in the last two quarters as a sign that, even if it wasn’t a great idea, the GOP’s giant tax cut at the end fo 2017 has had some positive effect on the country’s economy.

Krugman noted, however, that quarterly GDP growth figures fluctuate a lot, and the recent figures are hardly unheard of, despite what the president’s most enthusiastic cheerleaders have said.

He also pointed out that the most recent figures appear to show the trend of elevated GDP growth appears to be diminishing:

ADVERTISEMENT

“To a rough approximation, then, whatever bump in growth we got over the past year is most of what we’ll ever see. Now, annual growth including those two good quarters was 3 percent. But that should be compared with a baseline of normal growth, maybe 2 percent,” he explained.

So what caused the bump in the growth of about one extra percentage point? In fact, it’s the factor the Republican Party and conservatives have derided for nearly a decade now: economic stimulus. When President Barack Obama passed the 2009 stimulus bill to fight the 2008 recession, conservatives derided the idea as nonsense. Now, they’re seeking to claim credit for the effects of that very phenomenon on the current economy.

ADVERTISEMENT

But, Krugman, noted, it was just the tax cut funds — most received by wealthy people and corporations — that boosted the economy. With Obama out of power, Republicans finally decided to let government spending rise again:

“What this all looks like to me is a small payoff given the bulge in the deficit — a multiplier well under 1 even in the short run, and likely to shrink further as higher interest rates take their toll,” said Krugman. “Oh, and what about the great investment boom the tax cut was supposed to unleash? It’s looking about as real as Trump’s wall.”

ADVERTISEMENT


Report typos and corrections to: [email protected]. Send news tips to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

The real problem wasn’t the racism — it was the Trump taking ‘the Lord’s name in vain’ twice: supporter

Published

on

President Donald Trump was widely condemned after supporters at a campaign rally in West Virginia turned his racist "go back" message into a "Send Her Back" chant against one of a woman of color in Congress.

One Trump supporter in West Virginia also criticized the speech, but not for the racist targeting of Rep. Ilhan Omar.

State Senator Paul Hardesty, a Democrat, wrote to the White House to complain about Trump's use of the word "goddamn."

The letter was republished by the Montgomery-Herald.

Continue Reading

2020 Election

Here’s how Trump hopes to recreate his 2016 presidential win — and how Democrats can send him packing

Published

on

Writing for CNN on Saturday, election forecaster Harry Enten explained how President Donald Trump's recent, racist behavior lies in his desire to recreate the same electoral conditions that gave him a victory in 2016 in the presidential election next year.

"The Trump strategy is pretty simple: 1. Drive up the unfavorable ratings of his Democratic rival as he did in 2016 in order to compensate for his own low ratings. 2. Bank on an electoral college/popular vote split as he did in 2016. 3. Use a campaign of racial resentment to drive up turnout even more among groups favorable toward the President," wrote Enten. As he noted, Democrats have excellent odds to flip back Michigan and Pennsylvania, but they will have to work harder to win back any of the other states Trump flipped from the 2012 Obama camp — in particular Wisconsin, which was the closest state after those two.

Continue Reading
 

Breaking Banner

American, Italian and Russian blast off for ISS

Published

on

US, Italian and Russian astronauts blasted into space Saturday, headed for the International Space Station, in a launch coinciding with the 50th anniversary of the Apollo 11 Moon landing.

Alexander Skvortsov of the Russian space agency Roscosmos, NASA's Andrew Morgan and Luca Parmitano of the European Space Agency set off on a six-hour journey to the orbiting science lab from the Baikonur Cosmodrome in Kazakhstan at 1628 GMT.

A NASA TV commentator hailed a "textbook launch" minutes after blastoff in "sweltering" weather in Baikonur, where daytime temperatures reached 43 degrees Celsius on Saturday.

Continue Reading
 
 
 

Copyright © 2019 Raw Story Media, Inc. PO Box 21050, Washington, D.C. 20009 | Masthead | Privacy Policy | For corrections or concerns, please email [email protected]

Join Me. Try Raw Story Investigates for $1. Invest in Journalism. Escape Ads.
close-image