Trumponomics looks more and more like Voodoo Economics

Posting has been slow. Last weeks of classes and too many things to do. At any rate, this is the tax plan (below Trump's, above Laffer's infamous napkin plan; no big difference though).

Nothing much to say. It's vague, as his campaign promises. The only certain thing is lower taxes for the wealthy. As I noted before, there is no big stimulus in his budget (the big infrastructure spending he promised), and most of the stimulus comes from tax cuts for corporations and the wealthy (which shouldn't do much for the economy, other than increase inequality).

What's the matter with Kansas?

In 2010 Tea Party favorite Sam Brownback was elected governor and he had Republican majorities in both houses of its legislature. The GOP program was put in place. What happened, you ask?

The result of the GOP tax cuts is significantly lower employment growth than in the national economy. By the way, lower income tax and higher sales taxes, a very regressive tax policy, has led to a persistent overestimation of revenue, and tax shortfalls that led to spending cuts, which in part explains the employment problems (see here). And that is essentially the same program that the 3 national candidates are defending this year. Supply-side economics has been debunked several times, but it surprisingly survives. Zombienomics.

Keynesian vs. Supply-side Economics: Causality

In one graph.