Newt Gingrich admits Trump's economic plan is bullshyt

[King Kreole]

It is true that the economy grew quite fast from 1983 to 1989 but such a pickup in growth was a standard recovery of growth and fall of unemployment from the depths of the severe recession of 1981-1982 (the unemployment rate went above 10% in 1982). The severe recession ironically occurred right after Reagan took office and enacted the first tax cut.

I find it hard to believe that the biggest reduction in marginal taxation rate to the top bracket in American history wouldn't have played a role in whatever economic changes took place in that period though. Like, claiming that huge boom in economic growth was unaffected by an equally huge change in economic policy seems suspicious to me. The recent recession was even larger than the one in the late 70s-early 80s, should we automatically be expecting another "standard" massive economic recovery?

The private saving rate continued to decline slowly in the 1980s. In the 1973-1980, private saving averaged 7.8 percent of the economy, and dropped to 6.9% in 1986 and 4.8% in 1989. In other words, the saving rate was significantly lower after the 1981 tax cut than before it. The labor force grew at an average rate of 1.6% over the 1982-89 period, about the same as during the previous four years. Overall labor productivity grew rapidly before 1973 and much less rapidly since then. In the entire period after 1973, the annual growth rate of productivity has been very close to 1.1 percent. It average around 1.1 percent also in the 1980s.

I'm a neophyte on this issue, but wouldn't the private savings rate be expected to drop due to the investment friendly policies of Reaganomics? Like, didn't a bunch more people start investing in the stock market in the 80s? The '81 cuts dropped the capital gains rate to 20%, the lowest since the Hoover administration.

The labour productivity numbers are interesting.

Reagan advocates claim his tax cuts bolstered the economy while ignoring the lowered interest rates of the FED and increased deficit spending (kind of like an ongoing stimulus package).

Tax cuts were only one of the 4 pillars of Reaganomics. Using monetary policy to alter interest rates in the pursuit reducing inflation was another.

 

[Domingo Halliburton]

read the flipping link before you hit the quote button.

newt made a gargantuan political error that almost melted down the global economy when he supported the repeal of the glass steagall act.

i did read your link and other than Newt Gingrich being the only link, it's way off topic.

 

[Scientific Playa]

i did read your link and other than Newt Gingrich being the only link, it's way off topic.

take the blinders off or get out of a pigeon hole way of thinking. the reason for me posting that link in this thread was to show an example of someone who was way off in his economic/political decisions and doesn't deserve the right to criticize anyone else's economic plan. my post had everything to do with the op material.

 

[Domingo Halliburton]

take the blinders off or get out of a pigeon hole way of thinking. the reason for me posting that link in this thread was to show an example of someone who was way off in his economic/political decisions and doesn't deserve the right to criticize anyone else's economic plan. my post had everything to do with the op material.

ok. well it's certainly debatable.

 

[Domingo Halliburton]

Like that 1 or 2 trillion bushs accountants hid would have made a huge difference...By every measure Obama has had the most expensive administration and largest addition to the deficit
President Obama: The Biggest Government Spender In World History

And what excuses did i make for trump...all i said was he understands business better than Hillary...that is FACT

article is 4 years old.

 

[ⒶⓁⒾⒶⓈ]

article is 4 years old.

Yeah you're right he's almost at 20 trillion dollars now

 

[Serious]

If you told me Gingrich would still be a thing in 2016 I'd say you were out of your mind.

 

[Serious]

Donald Trump Pitches Tax Breaks Amid Speech Interruptions

Today Donald Trump delivers a luncheon address to the Detroit Economic Club, the venue of presidential candidates who want to put forward “serious” economic ideas. But Trumponomics isn’t serious. Much has been said about Trump’s anti-trade stance, and he'll play up tiny tax breaks for the middle class (see the puff piece in today's Wall Street Journal, below). But the heart of his economics is a humongous tax cut for the rich that will explode the federal budget deficit.

1. ...He wants to lower the highest marginal tax from today’s 36.8 percent to 25 percent – thereby granting the richest 1 percent an average tax cut of $275,000 a year and the top 0.1 percent, with incomes of more than $3.7 million a year, with a whopping $1.3 million tax cut each year.

2. He wants to cap all business taxes at 15 percent – thereby giving hedge-fund and private-equity managers an extra gift.

3. He’ll end the estate tax, which will give the richest even more.

4. He’ll exempt all childcare expenses from taxation (a bigger boon to the rich who pay more taxes than the poor, who pay little or none).

5. The plan would reduce federal revenues by $9.5 trillion over its first decade before accounting for added interest costs or considering macroeconomic feedback effects. Unless accompanied by huge spending cuts, this would increase the national debt to nearly 80 percent of GDP by 2036.

6. He also promises to use executive powers to impose a ban on new regulations to protect the public’s health and safety, and protect the environment.

Bottom line: Trumpononomics is Reaganomics on steroids -- trickle-down economics turned into Niagara Falls.

Not surprising. On Friday he announced a team of economic advisers consisting of billionaires, bankers and fund managers.

America can't be this dumb

I bet AEP is in here getting his no spin zone on...