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11:32 AM Sun, Feb. 17th

Letter | Golden’s economy column misses the point

Carl Golden’s column Jan 2 “Why Trump Isn’t Getting Credit for the Economy” misses the main points why Trump’s presidency has nothing to do with the economy.

During the past year no major legislation increasing government spending has been passed, and his executive orders are remote from job stimulation, mainly involving immigration, the environment, etc.

The consumer spending this Christmas season is because Americans are personally more in the red, piling up credit card debt. The slight decrease in unemployment and the GDP increase is a result of continued low-interest rates and a worldwide slow emergence from recession.

Stock market index highs are related to anticipated tax cuts, not more employment (just look at average PE ratios), and directly affect less than 10 percent of Americans’ wealth. Plus, historic data shows tax cuts do not stimulate the economy, just line the pockets of those in the upper brackets.

President Trump and House Speaker Paul Ryan lie when they repeat that the corporate tax rate cut from 35 percent down to 21 percent will create jobs. The average “effective” corporate tax rate is already 15 percent after depreciation and government handouts. Large U.S. multinationals are taxed zero on the billions they earn overseas, as well.

However, Golden is correct that Trumps incessant Twittering shows his gross instability.

Mike Lipskin