How Tax Cuts Will Trigger Recession

According to the more cynical pundits, government programs usually achieve the opposite of their intended goal. And sometimes they do.
For example, Richard Nixon’s ‘War on Drugs’ is still in progress, but the drugs are definitely winning.
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Some government programs, however, are more effective. Firefighters are doing a pretty good job extinguishing fires. The US Coast Guard saves lives every day. Public school teachers educate students who would rather be elsewhere.
And then there’s our increasingly dysfunctional Congress. Where to begin?
I’ve written recently how Congress’s new tax plan misses a chance to boost economic growth. Now I think it may be even worse. Instead of merely failing to stimulate growth, the tax changes could actually launch a recession. I’ll tell you why in a moment.

This post was published at Mauldin Economics on DECEMBER 5, 2017.

 

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