Greenspan: Tax overhaul will do 'very little' for growth
We know our Republican friends don’t want to hear this, but conservative economist and former Chairman of the Federal Reserve Alan Greenspan is backing up what economists from across the political spectrum have said for decades: tax cuts don’t mean growth, and the GOP tax scam is no different. Take a look at his remarks, courtesy of CNBC:
“The Republican-sponsored tax overhaul plan will do ‘very little’ to spur real economic growth but could push inflation dangerously higher, former Fed Chair Alan Greenspan said Wednesday.”
“Asked how much he thought tax reform would contribute to growth, Greenspan said: ‘Very little. The tax cuts, remember, at the same increase the deficit. All the econometrics that I've seen over the years tell me that when you increase the deficit and you increase the demand for funds, you're crowding out capital investment, and capital investment is the key statistic determining output per hour, that is, productivity.’"
“The Republican-sponsored tax overhaul plan will do ‘very little’ to spur real economic growth but could push inflation dangerously higher, former Fed Chair Alan Greenspan said Wednesday.”
“Asked how much he thought tax reform would contribute to growth, Greenspan said: ‘Very little. The tax cuts, remember, at the same increase the deficit. All the econometrics that I've seen over the years tell me that when you increase the deficit and you increase the demand for funds, you're crowding out capital investment, and capital investment is the key statistic determining output per hour, that is, productivity.’"