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Economists frequently get things wrong, because understanding the economy is hard. Pro-tax-cut people said that the tax cuts would have a stimulative effect (w
by QuesnayJr 7y ago
Economists frequently get things wrong, because understanding the economy is hard. Pro-tax-cut people said that the tax cuts would have a stimulative effect (which both economists and the opposition were skeptical about). And they did. US prime age employment is almost back to its pre-financial crisis peak. Does that mean economists were wrong to reject trickle-down economics?
Economists will always be the people policy-makers turn to, because they are the only people who actually try to understand the economy. Economists sometimes try to advance an agenda (and the actual economist varies by person), but the alternative is to turn to someone who only has an agenda.
- jayd16 7y agoThe decrease in unemployment has gotten slower since the last huge tax cuts so you can't even use it as an example of "maybe it worked, its hard to say".
- QuesnayJr 7y agoUnemployment is 3.7%, which is pretty closest to the lowest ever observed figures (other than during World War 2). How much faster can it drop?
- jayd16 7y agoI don't mean to imply it's bad. But yes. How much lower could it go? What did a trillion dollars do? Its not a great example of a large effect being correlated to a policy change.
- dlp211 7y agoUnemployment had been steadily declining for like 6 years before the tax cut. You can't just attribute the continuing drop in the U3 rate to the tax cuts.