$4.5 trillion cuts for business and investors, average or low wage Americans, Blame the foreigner in our midst, household debt load approaching $14 trillion, income and wealth gaps, inflation is under-estimated, Medicare, over-reported wage gains for the average and low paid workers, real inflation, real investment, Trump's tax cut policy, undocumented immigrants at 10-12 million
Recently I have had several journalists, academics and progressive activists ask me my opinion on some of the key economic questions of the day. Here are some of my replies: on Trump tax cuts and US growth, current immigration debates, wages, expanding income inequality in the US, on what is the real rate of inflation today, and whether proposals for universal guaranteed income, debt jubilee, Modern Money Theory, green new deal are solutions to today’s economic problems.
Question 1: Is US economic growth under Trump due to his tax cut policy and what is the future of average or low wage Americans today?
Dr. Rasmus: The nominally higher US GDP growth in 2017-18 has little to do with the Trump tax cuts. The Trump tax cuts passed in early 2018 amounted to more than $4.5 trillion over the decade, targeting to wealthy households, businesses, investors and corporations, which have…
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