Jeffrey Sachs, from the Rust Belt himself, shares his thoughts on Trump's economic plans and shares some red flags to watch for as new policy proposals surface.
The Rust Belt was promised a lot this election – will those promises, which are now transitioning into policies, be made good? Economist and UN advisor Jeffrey Sachs is a Rust Belt native himself, and believes it’s in the hands of people in that area to take an informed look at the economic proposals of the Trump administration – will these proposals benefit the average person, or is there misdirection and populist scapegoating at play that will only serve to make the rich richer? Sachs provides some red markers to watch for when listening to policy proposals, and offers a question to keep in mind: "Who is going to pay for that tax break?" It may not be the answer the people of the Rust Belt signed up for. Jeffrey Sachs's most recent book is Building the New American Economy: Smart, Fair, and Sustainable.
Earners keepers? According to Larry Kudlow, there's a secret history behind the US's history of tax reduction and it involves John F. Kennedy.
On December 14 in 1962, at the Waldorf Astoria Hotel in New York City, President John F. Kennedy unveiled an economic plan that would breathe new life into the stagnant US economy. His focus was on growth incentives; he proposed reducing marginal tax rates for all taxpayers, cutting the lowest earners' taxes from 20% to 14%, and the highest earners' taxes from 91% to 65%. His tax code also closed a series of loopholes and tax exceptions. These measures worked, and the U.S economy grew by roughly 5% every year, for almost eight years.
Radio broadcaster and CNBC senior contributor Larry Kudlow credits JFK as the initial force behind Reaganomics, and believes Democrats today should take heed and embrace tax cuts over tax hikes. Kudlow doesn’t believe in taxing your way to prosperity, and it’s the thread throughout his new book JFK and the Reagan Revolution: A Secret History of American Prosperity, which he’s co-authored with Brian Domitrovic. The book aims to correct the historical record, which Kudlow and Domitrovic feel omits the truth about Kennedy’s economic persuasion, which came about under advice from his Republican Treasury Douglas Dillon.
Are Kudlow and Domitrovic on the money with their thesis? Some people are strongly opposed, such as broadcaster, entrepreneur and bestselling author Thom Hartman, who says that "there's just one major, glaring problem with Kudlow's analysis: It's not true." Read here for a counterargument to Kudlow’s view.
Despite his chat with Big Think kicking off on the misguided notion that "we all start at the same beginning, the starting line is the same," hear Kudlow out and consider whether there's validity to his argument for tax cuts – does a rising tide really lift all boats? Or would its success hinge on the simultaneous closing of tax loopholes and exceptions, true to Kennedy's 1962 plan?
Kudlow and Domitrovic's book is Reagan Revolution: A Secret History of American Prosperity.