Ep. 75 Tax Cutting and Deregulation: It’s a Myth That These Cause Economic Growth!!

26 February 2017     |     Tom Woods     |     6

Krugman says the Trump Administration is wrong to expect economic growth in the range of 3 to 3.5 percent a year. We look at Krugman’s analysis of what does and doesn’t cause economic growth — and why he thought it was reasonable to expect 3 percent growth a year under Obama, which never happened in any year.

Krugman Column

On Economic Arrogance” (February 20, 2017)

Contra Columns

What Economic Research Says About Fiscal Austerity and Higher Tax Rates,” by Bob Murphy
Krugman’s “Gotcha” Moment Leaves Something to Be Desired,” by Dan Mitchell
Wanna Bet Some of That Nobel Money?,” by Greg Mankiw

Episodes Mentioned

Ep. 37 Our Most Brutal Takedown Yet: Krugman on the Clinton Economy
Ep. 8 Does the Economy Perform Better Under Democrats?

Join Us Aboard the Contra Cruise!

Bob and Tom are hosting the second annual Contra Cruise for fans of Contra Krugman! October 15-22 aboard Royal Caribbean’s Oasis of the Seas, and departing from Port Canaveral. It’s an absolute blast, as you’ll see in the video. Check it out by clicking here.

Need More Episodes?

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

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  • https://www.facebook.com/david.rogers.hunt David_Rogers_Hunt

    Once again Krugman reasons that nothing good can ever come out of anyone just ignoring whatever he says. Also nothing he says is ever falsifiable because he says everything imaginable,… thereby keeping all his bases covered.

  • http://www.economicmanblog.com Roger Barris

    Regarding the California discussion and the long-term versus the short-term, obviously capital is much more mobile than labor. So, we would expect high taxes to affect businesses faster than individuals. The business out migration is already well on its way. Here is an article on Nestles recent decision to leave California for both tax and regulatory reasons (with the regulations manifesting themselves through crazy lawsuits): http://www.investors.com/politics/commentary/another-big-company-departs-california-will-last-one-to-leave-shut-the-lights/

  • http://2vnews.com 2VNews

    3 Cs of economic growth:
    Cut Regulation, Cut Spending, Cut Taxes
    When government tries to micro-manage, government does a lot of damage.

  • khodge

    Anecdotally, tax cuts did not keep Tom in Kansas.

    • Joshua Crosby

      anecdotally, Tom moved to Florida where there is zero income tax.

      • http://www.TomWoods.com Tom Woods

        There’s also zero income tax in Kansas for self-employed people, which I am, so this represented no change for me.