While in Davos, Donald Trump was pressed on the larger budget deficits that his 2017 tax law created. In response, Trump hinted that he would look to cut Social Security, Medicare, and Medicaid in his 2nd term
went as follows. Giving corporations massive tax cuts and showering the richest households would make them flush with money to invest. This would lower the cost of investing and result in a spending boom on new manufacturing plants, office buildings, vehicle fleets and energy upgrades, among other things. More investment would then boost productivity growth, raise wages and increase employment.
The problem is that they just decided not to boost investments, once they got more money. Capital expenditures from nonfinancial corporations have remained pretty much where they had been for several years before the 2017 tax cuts . And more recently they have declined.Calculations Based On Federal Reserve, Financial Accounts Of The United States
But the tax cuts cannot deliver on the promises of faster growth and higher wages if companies don’t invest. In fact, economic growth got only a very temporary boost in the first half of 2018 and has slowed since then . Productivity growth continues to underwhelm by historical standards. And wage growth has slowed over the past year, even as employment levels have gone up.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Column: Trump opens door to Social Security cutsTrump signals he's open to Social Security and Medicare cuts, despite promising during the last presidential campaign to leave the programs alone.
Read more »
Trump says reforming Social Security and Medicare is 'the easiest of all things' as he appears open to cutting entitlement spendingAny initiative to cut spending on Social Security and Medicare would be a break from his 2016 campaign pledge to protect funding for those programs.
Read more »
Trump now says he's open to entitlement cuts, including MedicarePresident Trump signaled this week that he's open to cutting federal entitlements to reduce the federal deficit, despite previously campaigning on protecting Medicare and Social Security
Read more »
Trump is threatening a damaging new trade war with the United Kingdom after Brexit - Business InsiderDonald Trump is threatening a damaging new trade war with the United States' closest longstanding ally.
Read more »
Twitter reacts to Trump saying he's open to cuts in Medicare and other entitlement programsAfter the president promised that he would work to avoid cutting Social Security and other programs, he now says he's 'going to take a look' at cutting the programs.
Read more »