Krugman argues that the GOP tax plan, even on its own terms, would blow up the trade deficit and lead to millions of lost manufacturing jobs. We teach the economics behind his argument, but also mention–get ready for this–that Krugman leaves out two big factors that completely undercut his case.

Krugman Blog Post

“Tax Cuts and the Trade Deficit” (November 14, 2017)

Related Link

Overview of the Senate’s Amendment to the Tax Cuts and Jobs Act

Need More Episodes?

Tom and Bob have their own podcasts! Check out the Tom Woods Show and the Lara-Murphy Report.