Question
This is a discussion on economic growth. We hear about it all the time. The Republicans promised that great tax cuts would further stimulate economic
This is a discussion on economic growth. We hear about it all the time. The Republicans promised that great tax cuts would further stimulate economic growth when they passed The Tax Cuts and Jobs Bill of 2017. The promised additional growth didn't happen. By some measures, the growth trend of 2009 to 2016 slowed a bit. Additional jobs were created, but not quite as fast as before.
Historically, economic growth in the U.S. has been highest in times of high federal taxation, not the opposite. This may be because most tax cuts do two significant things. First, cuts reduce the funds available for governments to invest in the economy, whether it be roads, bridges, dams or education. Second, tax cuts usually assist those who are already doing well, particularly the super wealthy. This increases income inequality. Income inequality slows economic growth.
In this discussion, consider how the U.S. might address the issue of economic growth. In addition, consider whether it should be the goal. Maybe consideration should be given to improving sustainability. After all, the average income of Americans is already over $60 thousand per person, and improved well-being may be more a matter of redistribution than a growth pattern that has predominantly benefited only the very wealthy.
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