Paul Krugman Takes Down Trump’s Failed Tax Cuts In Scathing Tweetstorm

Krugman

Economist Paul Krugman analyzed the effects of President Donald Trump’s massive tax cuts for the rich one year after they were signed into law, and he was not impressed.

As you may recall, Republicans passed the tax gift for the wealthy and corporations just before Christmas in 2017, arguing that the cuts were necessary to stimulate economic growth.

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One year later, however, the deficit and debt has skyrocketed and the stock market continues to experience massive losses as interest rates and prices rise and retirement accounts shrink. Many companies have also responded to getting a tax cut by laying off thousands of workers rather than hiring like Trump promised.

On Friday night, Krugman took to Twitter to blister the tax cuts and the largely negative impact they have had thus far, and predicted more economic struggles ahead.

First, he noted that Wall Street is very unhappy:

Krugman conceded that the United States experienced fast growth in two quarters this year, but observed that the honeymoon is over because that growth has slowed down and that it didn’t make much difference in overall GDP:

Krugman also pointed out that government spending went the wrong directions under Trump and former President Obama. Republicans obstructed and complained about the deficit enough to force Obama to curb spending during his term even though increased government spending is a good response to a recession. But when Trump took office, Republicans disregarded the deficit and spent money like drunken sailors even though the economy had largely recovered under Obama’s leadership and policies, the opposite of what government should do when the economy is stronger:

Indeed, even Trump knows that higher interest rates are going to take a toll on the economy, but his trade policies and tax cuts are forcing interest rates to rise.

Krugman concluded by mocking the “investment boom” Trump said his tax cuts would generate:

The bottom line is that Trump and Republicans lied about the tax cuts and America is paying the price for it. Republicans cannot be trusted to be good stewards of the economy and the only way to remedy the damage they have done is to vote in 2020 for a Democratic Senate and a Democratic presidency.

Featured Image: Wikimedia