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May 22, 2018
Recently I read an article which pointed out that economic growth under Trump was average or below that of the Obama years, giving the lie to his claim of robust growth and aggregate demand resulting from his tax bill. I agree that the economy is booming, that is, for Wall Street and the rich and corporate class, but the economy is headed south for the rest of us. Truth be told, the chump change increase in wages provided by the bill has long since evaporated due to accelerated inflation, interest increases, gas prices etc. The corporate workforce is now worse off than before the tax bill was passed, but not so the rich and corporate class, who borrowed $1.5 trillion from our future as a gift from you and me and our grandchildren while at the same time reducing their liability to pay for their gifts to themselves. Following was my reply to this enormous bump in our already $21 trillion debt which Trump said would pay for itself in terms of enhanced economic growth. It did not and will not – quite the contrary.
Economic growth depends solely upon aggregate demand, not tax cuts, and when massive tax cuts to Wall Street and corporate America such as the recent Trump & Ryan giveaway result in stock buybacks, dividends, and other such non-productive utilization of capital rather than in increases in wages, new plant and equipment, which facilitate economic growth, the economy will continue to plod along, or even regress into recession, which I predict for this year or next year at the latest as the toxic effects of this Trump & Ryan giveaway causes aggregate demand to tank.
Trump and Ryan have done a good job in giving away your money and mine and that of our children’s children with their borrowing from tomorrow to fund $1.5 trillion in gifts to the superrich today while reducing the relative liability of the superrich to repay and increasing our liability to repay for such largesse. The bill was passed using (long since disproven) trickledown propaganda that promised us we would have economic growth as a result.
We have not had economic growth as a result; rather we have had interest accruing on that gift along with the principal of $1.5 trillion which Trump and Ryan added to an already some $21 trillion national debt (already at interest, and at an increasing rate as we manage our debt). We have been bamboozled since aggregate demand has hardly nudged and inflation and interest rates are accelerating, all easily predictable for those of us who could see through the haze of trickledown propaganda. When and if politics change this fall and in 2020, I fervently hope that this Trump & Ryan atrocity is repealed or otherwise neutered in its application in favor of policies that (for a change) benefit the 99 percent. Let’s make that happen.     GERALD     E

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