As Republicans pushed through their first major bill in the Trump era, approving $1.5 trillion in tax changes and adding an estimated $1.4 trillion to the Federal Government’s debt, I spoke with Monocle 24’s The Briefing about the economic and political consequences.
Listen from 9:00:
Economically, this means we are walking into the unknown because it is the wealthiest Americans who will receive most of the $1.5 trillion in tax cuts. What we don’t know is the ultimate effect, with middle- and lower-income Americans receiving little if any benefit. Will this create a short-term economic bubble which will soon burst?
The Republicans are gambling that this bubble can get them through the 2018 mid-term elections for Congress and they can hold onto their majority. The Democrats are thinking they may have lost the battle but will win the war because most people will see this as a measure benefitting the fat cats with no obvious benefits for them.
