Posted on 02/25/2017 8:23:06 PM PST by MtnClimber
Virtually the whole world is beating up on the Trump administration for daring to predict that low marginal tax rates, regulatory rollbacks, and the repeal of Obamacare will generate 3 to 3.5 percent economic growth in the years ahead.
In a CNBC interview last week, Treasury Secretary Steven Mnuchin held the line on this forecast. He also argued the need for dynamic budget scoring to capture the effects of faster growth. Good for him.
But what’s so interesting about all the economic-growth naysaying today is that President Obama’s first budget forecast roughly eight years ago was much rosier than Trump’s. And there was nary a peep of criticism from the mainstream-media outlets and the consensus of economists.
Strategas Research Partners policy analyst Dan Clifton printed up a chart of the Obama plan that predicted real economic growth of roughly 3 percent in 2010, near 4 percent in 2011, over 4 percent in 2012, and nearly 4 percent in 2013.
But it turned out that actual growth ran below 2 percent during this period. Was there any howling about this result among the economic consensus? Of course not. It seems they’ve saved all their grumbling for the Trump forecast today......
So here’s President Trump reaching back through history for a common-sense growth policy that worked in the 1960s, when JFK slashed marginal tax rates on individuals and corporations, and again in the 1980s, when Ronald Reagan slashed tax rates across-the-board and sparked a two-decade boom of roughly 4 percent real annual growth.
But the economic consensus won’t buy Trump’s plan.
(Excerpt) Read more at realclearpolitics.com ...
The MSM was lying then and they are lying now.
I think you nailed it.
May God bless president Trump if he gets the economy growing faster than heretofore.
There are still way too many white and blue collar workers without jobs in Texas who depend on an upturn in the oil and gas industry.
Let these workers join our society again.
Now This is huge!!
I hope he's series!!
Get rid of baseline budgeting NOW!
These so-called “economist” are the brainwashed spawn of liberal academia, who continue to cling to discredited economic philosophies.
Now This is huge!!He also argued the need for dynamic budget scoring to capture the effects of faster growth.
I hope he's series!!
Get rid of baseline budgeting NOW!
“Dynamic budget scoring” is the rejection of the assumption that tax revenue goes down in direct proportion as the tax rate goes down. “Static” budget scoring is notoriously erroneous WRT the Capital Gains tax rate, a cut in which has, historically, always produced an increase rather than a decrease in revenue.Baseline budgeting is, you probably know, a different thing - it is the hardwiring in of projected increases in spending, such that merely holding expenditures constant would be scored as a “cut.”
My first thought when I read your post was that you confused the two, but on reflection I assume you know the difference and are making an excellent additional suggestion.
Not to mention I misspelled “huge”...
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