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Three big economic mistakes that Republican lawmakers often make — a thread
#1: Assuming that stimulus doesn't work.
Recessions are often caused or exacerbated by shortfalls in aggregate demand. Fiscal stimulus is a way to raise aggregate demand, so as to combat recessions. There's lots of evidence that it works.
Recessions are often caused or exacerbated by shortfalls in aggregate demand. Fiscal stimulus is a way to raise aggregate demand, so as to combat recessions. There's lots of evidence that it works.
#2: Overselling the economic benefits of tax cuts.
It's definitely possible for a well-designed tax cut package to grow the economy. But the overall effects are often not big enough for anyone to notice. And tax cuts rarely pay for themselves.
It's definitely possible for a well-designed tax cut package to grow the economy. But the overall effects are often not big enough for anyone to notice. And tax cuts rarely pay for themselves.
#3: Paying attention to Stephen Moore
The best economic experts are familiar with the relevant evidence, analyze each situation on its own terms (rather than through a preconceived ideological frame), and present nuanced conclusions. This does not describe Stephen Moore.
The best economic experts are familiar with the relevant evidence, analyze each situation on its own terms (rather than through a preconceived ideological frame), and present nuanced conclusions. This does not describe Stephen Moore.
