Ultimately, it may be too soon to make any firm conclusions about how impactful the tax cuts will eventually be; but given that the US economy is already experiencing strong economic growth, and given that virtually all the signs point to an economy operating at full employment—and therefore, at full capacity—such sweeping reforms that have been at least partly designed as an economic stimulus could well be dangerous. --The International Banker.
It's true economics is a largely uncertain discipline, especially when it comes to making accurate forecasts, but I think it is even more true that most Americans don't know enough economics to fairly judge the field. Hence, you get myths that it is of little or no value at all, which even a child might wisely see through by countering, "If so, why does every major corporation employ its own squad of in-house economists? Are corporations charitable organizations these days?"
Does the above International Banker quote make perfect sense to you? Or does it perhaps seem strange to you that a tax cut plan designed to boost the economy "could well be dangerous"? I'm genuinely -- and I hope non-judgmentally -- curious how many of us reading that quote were instantly aware it was talking about the risk that the tax cuts could boost the economy so much they might ignite inflation? That's a very basic economic fact - one no one doubts, except perhaps those many of us who know nothing about it.
I'm no economist, and most likely neither are you, but why on earth should that matter to us?
We're humans and therefore know it alls. I'm even quite certain that when God wrote the American Constitution he wrote into it the sacred right of all peoples on earth to think they know everything. Even James Madison's blasphemous amendment separating church and state can't change a right as fundamental as that one.
So I'd like to hear your views on the most likely consequences of the cuts. Go for it!
