{"id":36581,"date":"2018-08-08T19:26:39","date_gmt":"2018-08-09T00:26:39","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36581"},"modified":"2018-08-08T19:26:39","modified_gmt":"2018-08-09T00:26:39","slug":"trump-buys-into-the-krugman-con","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36581","title":{"rendered":"Trump buys into the Krugman con"},"content":{"rendered":"
\n

Trump buys into the Krugman con<\/a><\/h3>\n<\/div>\n
\"Trump<\/div>\n
\n

Leading economic indicators suggest that the Republicans are headed into the fall mid-term election season with the wind at their backs.<\/p>\n

Real GDP growth hit 4.1% during the second quarter. The unemployment rate recently slipped to 3.9%, and the US Federal Reserve is finally starting to meet its inflation targets.<\/p>\n

Things are so good that U.S. president Donald Trump calls it <\/a>\u201cthe greatest economy in the history of America.\u201d<\/p>\n

Yet while all appears well on the surface, there are growing concerns among gold investors about the sustainability of the current pick-up.<\/p>\n

Works well in practice\u2026 but does it work in theory? <\/b><\/p>\n

Part of the problem relates to the old joke about French university professors. \u201cIt works well in practice,\u201d they reportedly ask. \u201cBut does it work in theory?\u201d<\/p>\n

The same question underlies Trump\u2019s economic practices. They are clearly generating short-term results. But they don\u2019t appear to adhere to any underlying philosophy.<\/p>\n

Republicans liken Trump\u2019s tax cuts and his deregulation efforts with policies implemented by the Reagan Administration. However, the comparison is far from perfect.<\/p>\n

For one, the Trump Administration\u2019s growing tariffs on imported goods, which amount to hidden sales taxes, are gradually undoing the effects of his earlier tax cuts.<\/p>\n

Worse, the Trump Administration\u2019s practice of choosing which sectors will benefit from protective tariffs and which won\u2019t amounts to a drastic increase in government intervention in the economy.<\/p>\n

Making government great again <\/b><\/p>\n

Taking a step back, Trump\u2019s policies incorporate many of the \u201cbig government\u201d themes advocated by mainstream economists from both major political parties during much of the past four decades.<\/p>\n

Led by Paul Krugman, a Nobel Prize winner, New York Times columnist and professor at CUNY, the economics profession has consistently advocated growth in government spending, borrowing and credit creation in the hopes of spurring economic growth.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Trump buys into the Krugman con Leading economic indicators suggest that the Republicans are headed into the fall mid-term election season with the wind at their backs. Real GDP growth hit 4.1% during the second quarter. The unemployment rate recently slipped to 3.9%, and the US Federal Reserve is finally starting to meet its inflation […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10189,195,7844,303,8261,614,13228,20614,3650],"class_list":["post-36581","post","type-post","status-publish","format-standard","hentry","category-economics","tag-big-government","tag-debt","tag-donald-trump","tag-fed","tag-mainstream-economists","tag-paul-krugman","tag-peter-diekmeyer","tag-sprott-money-news","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36581"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36581\/revisions"}],"predecessor-version":[{"id":36582,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36581\/revisions\/36582"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}