Robert Reich: Trump's Shutdown Reveals Trumponomics for the Failure That They Are (Grifted)

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Robert Reich: Trump's Shutdown Reveals Trumponomics for the Failure That They Are

One of the least talked-about consequences of the partial shutdown of the U.S. government—courtesy of Donald “I’m proud to shut down the government” Trump—is its negative effect on the U.S. economy.

Federal spending accounts for just over 20 percent of the total economy. When that spigot is turned halfway off, as it is now, demand for goods and services necessarily drops. The result is less investment and slower growth.
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A year ago Trump and congressional Republicans predicted that their corporate tax cut would cause business investment to soar, which would lead to faster economic growth and higher wages.

It was classic supply-side rubbish. Rather than invest more, American corporations have been scaling back their investment plans.
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Trumponomics is an abject failure because its premises are flawed. Cutting taxes on big corporations and the wealthy doesn’t stimulate investment. It only creates a bigger national debt that has to be paid off somehow, sometime.

And who’s going to have to pay it off—either in higher taxes or fewer government services? You guessed it. Average Americans, who are already being shafted by Trump’s policies. - Newsweek

GOP Tax cuts always equal deferred taxes with interest. It's always worked that way and it will always work that way.

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1. Trump actually raised taxes, just ask Milton Friedman

Milton Friedman, the favorite economist of Reagan and Thatcher, said that the true rate of tax is the rate of spending. Because all spending is paid with tax. Trump passed a huge military spending hike. He raised spending so he raised taxes. His tax “cut” is really just a tax delay. We will pay more in taxes but in the future when Trump is not running for office. The whole tax cut story is a con.