See Trump’s call for at least a $500 billion program of government spending on US infrastructure here and here, without raising taxes. See the video here.
Yes, it’s massive deficits for the US if Trump wins, and massive Keynesian stimulus, even if his tax cut plan is regressive like that of Reagan.
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I don't think this is fair. Reaganomics was tax cuts combined with an increase in military spending. Both the Reagan tax cuts AND the military spending were regressive (military spending leads to increased income disparity, as James Galbraith has shown).
ReplyDeleteTrump wants infrastructure spending, which is progressive, with tax cuts, which are regressive. His plan as so far outlined is most similar to that of JFK. JFK's plan was put together by neo-Keynesians like Hansen and was criticised from the left by the likes of JK Galbraith.
I have sympathy for JFK economics as I think, in an ideal world, corporation tax is stupid. and merely impacts prices. The chartalists in their finer moments agree. That is why they often point to the Ruml piece:
http://www.constitution.org/tax/us-ic/cmt/ruml_obsolete.pdf