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The new old hacks..
#21
Larry Kudlow replaces Cohn.. His track record..


Quote:This faith in the power of supply-side tax cuts has gotten him into trouble as a prognosticator on more than a few occasions. As longtime Kudlow critic Jonathan Chait notes, Kudlow was predicting in 1993 that Bill Clinton’s hikes to top rates would preclude an economic recovery. By 2000, when it was clear that hadn’t happened, he was crediting the economic boom to Reagan’s cuts nearly two decades earlier:
Quote:In 1993, when Bill Clinton proposed an increase in the top tax rate from 31 percent to 39.6 percent, Kudlow wrote, “There is no question that President Clinton’s across-the-board tax increases … will throw a wet blanket over the recovery and depress the economy’s long-run potential to grow.” This was wrong. Instead, a boom ensued. Rather than question his analysis, Kudlow switched to crediting the results to the great tax-cutter, Ronald Reagan. “The politician most responsible for laying the groundwork for this prosperous era is not Bill Clinton, but Ronald Reagan,” he argued in February, 2000.
He was such a firm believer in George W. Bush’s tax cuts that he was proclaiming as late as December 2007 that “The Bush boom is alive and well.” (That month marked the beginning of the Great Recession.) In July 2008, he proclaimed that the housing market was recovering. Then in 2011, as the economy began recovering under President Obama, Kudlow credited the positive developments to Bush’s tax cuts.

That wasn’t the only policy of Bush’s he preferred. In June 2002, he argued for an invasion of Iraq on the grounds that “the shock therapy of decisive war will elevate the stock market by a couple-thousand points.” The US did invade; the stock market did not rise by thousands of points thereafter.
Larry Kudlow, Trump’s new top economic adviser, explained - Vox

This stuff is simply a joke.
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#22
Kudlow has left a trail behind that's coming back to bite him with predictable regularity..

Quote:White House chief economic adviser Larry Kudlow defended the recently passed two-year budget that the Congressional Budget Office (CBO) says will increase the national debt and deficit even though in 2009 he attacked the Obama administration for doing the same thing.
CNN’s Erin Burnett played Kudlow a clip from 2009 where he criticizes an Obama budget for the deficits and debt it created. “The families of America take a look at this budget and these humongous deficits and the doubling of the debt and so forth and the out of control spending….this is the most unbalanced fiscal story coming out of Washington, really in our history,” Kudlow said in 2009.

Burnett pointed out that in 2009, CBO said the national debt would reach 68 percent of the gross domestic product by 2019. Today, the CBO said that the national debt would reach 105 percent of GDP by the end of 2028. Kudlow told Burnett that the Trump administration doesn’t believe the CBO’s projection that the GOP tax cuts and spending bill will increase the national debt. He added that his issue with the Obama program was that “it was all spending,” mainly for welfare programs and social spending that he didn’t think would lead to growth. When Burnett pushed back by saying that President Trump recently signed a spending bill that will sharply increase the deficit, Kudlow said that Trump’s spending bill was “nothing like the Obama stimulus package.””
Kudlow confronted over attacks on Obama deficit after rejecting CBO's projections on Trump budget | TheHill

Of course it's mostly nonsense:
  • In 2009, the economy was in deep recession. Apart from the recession itself blowing up the deficit, it's the right time for stimulus, as the private sector was repairing balance sheets, therefore saving more and spending less.
  • The 2009 stimulus program wasn't all spending, it also contained one of the biggest tax cuts in US history.
  • But spending was really required in 2009, especially on lower incomes because significant parts of the tax cuts were likely saved (to repair balance sheets as asset values dropped steeply whilst debts remained) and spending stimulates the economy dollar for dollar in such a situation.
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