Trumponomics and the US economic performance:
Adam Davidson notes:
“Trump is no longer
a mystery. He is among the most transparent of public figures. The mystery is
that it all works. The stock market, even with this week’s drop, has been at
record highs. Unemployment is at record lows. Consumer and business confidence
is robust. How can this be? According to basic economic theory, businesspeople
should look at this chaos and realize it is unsustainable.
G.O.P. politicians
and some sympathetic economists argue that the tax cuts and deregulation are
spurring business. But there is one idea that Keynesians and Chicago School
thinkers have long agreed upon: It is always possible to give an economy a
sugar rush, a short-term boost, by flushing huge amounts of government money
through the system…
An important lesson
of the financial crisis of ten years ago is that markets are very bad at
figuring out how to respond to warning signs.”.