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Will the tax cut "overheat" the economy

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independentusa

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Trump claims his tax ct is great for the economy, that it will stimulate it for greater growth. I wonder if pumping billions into the economy via the tax cut for both business and individuals and the additional billions created by government borrowing will actually overheat an already strong economy. We are already seeing higher inflation and we are barely beginning both the tax cuts and the borrowing. The Fed will certainly clamp down through its interest rates and we could begin to see the cycle pattern of higher inflation, higher interest which can lead to eventually slower growth to keep inflation in check. The economy was already strong and growing, did we actually need this giveaway to the very wealthiest Americans at a time when it was not needed. These same GOPers complained when Obama suggested a stimulus package in 2008 when it was needed and did its job leading to today's strong economy.
 
independentusa said:
Trump claims his tax ct is great for the economy, that it will stimulate it for greater growth. I wonder if pumping billions into the economy via the tax cut for both business and individuals and the additional billions created by government borrowing will actually overheat an already strong economy. We are already seeing higher inflation and we are barely beginning both the tax cuts and the borrowing. The Fed will certainly clamp down through its interest rates and we could begin to see the cycle pattern of higher inflation, higher interest which can lead to eventually slower growth to keep inflation in check. The economy was already strong and growing, did we actually need this giveaway to the very wealthiest Americans at a time when it was not needed. These same GOPers complained when Obama suggested a stimulus package in 2008 when it was needed and did its job leading to today's strong economy.
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At some point it will. But there is a lot of slack in the economy from the Obama years, and once that is gone wages and prices will start to go up. We do need some inflation for a healthy economy, and hopefull the fed can keep it in check with monetary policy. But we have to get the fed rate up for the next recession so we have tools too fight it.
 
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