Fuck Jerome Powell

[RobertMcNamara]

7. Before Covid ever happen Trumps tax plan would eventually lead to inflation

The Tax Cut and Jobs Act of 2017 eventually was going to cause high inflation. According to the National Bureau of Economic Research, the long-term impact of the act was an increase in the Consumer Price Index (CPI) by 0.7 percentage points, which is a significant amount for an economy like the United States (1). Secondly, the act increased the federal budget deficit, which means that the government had to borrow more money to keep its economy running (2). This extra borrowing leads to more money circulating throughout the economy, which, in turn, leads to higher levels of inflation. Additionally, the tax cuts caused a decrease in taxes that businesses and individuals had to pay, leading to a higher spending capacity and more demand for products (3). This increased demand drives up prices and leads to higher inflation. Once the chain reaction started, it was always going to spiral out of control more.

1. "The Macroeconomic Effects of the 2017 Tax Reform," National Bureau of Economic Research, https://www.nber.org/papers/w26755.

2. "The Impact of the Tax Cuts and Jobs Act on the Federal Budget," Congressional Budget Office, https://www.cbo.gov/publication/53581.

3. "Tax Cuts and Jobs Act: Exploring Impacts on Inflation," Investopedia, https://www.investopedia.com/articles/investing/031218/tax-cuts-jobs-act-exploring-impacts-inflation.asp.