Felix Salmond, Congress, Jeb Bush discussed on The Brian Lehrer Show
It's the Brian Lehrer show on WNYC good morning again everyone there's so much economic news recently that we will dwell on some. Of that now with Felix Salmond from wired and Slade. There's the strong four point one percent growth in the second quarter reported on Friday but. The rich get richer and the wage gap persists there's. The fallout from the Trump tariffs and now the projected twelve billion dollar tax bail taxpayer bailout. From the tariffs being floated by. The, White, House there's Facebook's biggest one day loss last week of any American stock ever one. Hundred, nineteen billion dollars Twitter's. Also, feeling some of the backlash at the, box office, apparently but while most of the other tech giants did just fine thank you, there are new federal deficit numbers that are worse than the Republicans predicted from their. Trickle down tax cut theory there's, the time story that Republicans are not running for congress on the, tax cuts As much as they may have, once expected, to there's the Federal Reserve Board. At interest rates and I'm out of breath just listing, the. Potential topic so let's bring in Felix salmon who writes about the economy for wired and slate and hosts the slate money. Podcast he Felix welcome back, to WNYC greats behalf you left after all that I, have nothing left to save more or less covered the. Basis thank you very much for coming we hope to see, you again four point one percent economic. Growth remember the two thousand sixteen Republican primaries before. Trump's stole the show with building a wall and banning Muslims it was. Jeb Bush predicting he could bring four percent growth well four percent growth can you put it. Into context of the economy what I can say is that. This is. What's known as a preliminary GDP figure the preliminary GDP figures have huge Erebus on them sometimes you get a. Preliminary figure which is late zero point five percent and everyone freaks out and everything Thinks the recession is about around the corner and then hands, out by the time the final numbers come out that. In fact it was plus three and a half percent or something but don't put too much stock in the single. Data point especially when it's such an early one it's it than it would be if it was low but it's if you get a. Long series of these if they. Stand up to revisions then you, start thinking, oh okay, the economy. Is ticking along quite nicely how about wage stagnation the economics textbooks tell us that eventually growth in the. Size of the overall economy will lead to growth in wages. Because, there are enough. New prophets in there to trickle down where is? That the case and where is it not in the United States economy today so. We had that big from tax cut and the. Whole point of the Trump tax cut to oversimplify massively was, to reward, capital rather than labor so the People who have all the, money and who the, stocks, into, the companies did very well and labor. You know has been? Losing its rights to unionize and has been basically losing a certain amount of negotiating power and what and this is exactly what you would have expected given how the tax cuts, were structured is that the? People who really benefited for them with rich and not the? Workers how about the assumption in that I think the implication that answer that the tax cuts did help lead to the four percents preliminary economic growth. Number yes Perhaps it's if so it was a bleak I mean the corporate profits a booming you know there's no doubt? About, that and, so. A bunch, of those prophets do turn up in, GDP but as I say don't place too much stock in that focus and figure because it's it's still fuzzy do you agree with the New York Times article is, a lot of people might, have, read over the weekend that the Republicans for congress I know you're an economics analyst not a political analyst but do you agree from, what you can tell with that article that the Republicans for congress on not running so much on. The tax, cuts as one might have expected well they shouldn't right I mean you you run on the basis of I'm going to pass a tax cut and that's what they did in two thousand sixteen and, they wound up passing the tax cut as they promised to do the it's hard? To run on hey I passed? This tax cut and you work as a seeing none of it and the people who are making all of the. Money Rich in our owners of capital so it's hard to see how you could run on the tax cut which you pasta? Previously, in fact, here's. An example, of a campaign commercial running late now, in a special election that's gonna take place in Ohio where the democrat Danny O'Connor is bringing up the tax cuts as he runs against the Republican tribe.