There was a fascinating article in The New York Times yesterday that made a very clear distinction between the Trump Administration’s economic policy worldview and that of both major political parties. It is precisely the distinction I made to family members all the way back in December 2015. The money quote:
“In recent decades, the two political parties pursued economic policies focused on helping people directly. Republicans championed lower income taxes; Democrats emphasized expansion of the social safety net. Both parties sought to improve education through regulation and subsidies.
“And presidents from the two parties backed trade deals that sacrificed manufacturing jobs for a wave of imports that let consumers buy televisions, furniture and clothing at lower prices.
“Mr. Trump has substituted a singular focus: increasing the output of the United States economy.”
Because I have been saying this since December 2015 it is easier for me to pick up on this than, for example, my family members. I sent this article around yesterday and the response was: “How is this any different than what any other Republican administration would be doing?” Prior to the tax cut & reform bill passing I did not have much hard evidence to offer, as it is largely a “feel” thing. But with a game-changing corporate tax overhaul now in place, the evidence is hard as a rock. Per Axios:
“Trump won a bigger corporate tax break than either Bush ever got.”
While “just” a single line item, the corporate tax overhaul in this bill is a serious, serious supply-side game-changer for the American economy, which will now be THE single greatest destination for global investment capital for years to come, representing a step-change upward reset of output and job growth.
“It’s the economy, stupid.”