Paul Krugman has won the Nobel Prize in economics. He has a well-read column in the New York Times. He has a fairly clear policy and almost everyone is convinced that this is a good policy. It is also clear that he would like to work for Hillary Clinton as minister of economic affairs. So we can’t call him President Trump’s friend.
Krugman has made a mistake. Just before the election, he predicted a win for Hillary Clinton. He was wrong and predicted a Trump recession. That must have been a bit painful for him. The Trump recession has not been there. We can only blame President Trump for not having solved the structural problems in the United States. After all, there are many problems in the US. But after a few days, Krugman had to withdraw his claim from the “Trump recession”. The stock market went up and the recession did not break out. I wonder how the recession could have happened so quickly? Or did he expect that the unsustainable American bomb had suddenly exploded?
Krugman has strongly criticized Trump’s tax cut. There was a good reason for that. All that money should have been spent on a state with strong social security. You can be for that. But why does a well-read economist not mention the argument that the tax reduction has not been accompanied by a reduction in expenditure? Why not emphasize that this only works if interest is kept artificially late?
I am in favor of the Trump tax reduction. But I first cut public spending and use the windfalls to pay off the debt. 1 year only. First, implement the cost savings. Then pay off. Then reduce the load. In this way, the unsustainable American debt mountain might be repaid. I don’t know if it’s going to work. But this is the most sensible thing I’ve ever heard.
But then we look at the development of the stock market. It is clear. The American stock market is doing very well. That is not only the fault of the tax cut or of Trump. It has multiple causes. Economic activity is increasing thanks to the abolition of regulations. The rise on the World Freedom Index of the United States is proof of this.
We see here the ranking of the United States from the year 2010, halfway between the Obama Presidency and 2017. Halfway the Trump Presidency.
Why economic freedom matters? It is the perfect parameter to see where growth can come from. Where new innovations can earn money. It’s all about the possibility. No, the freedom to start a new company. No hassle.
Well, this change is quite unique for the United States. For example, VAT is different per municipality. There is a tax on internet spending. The so-called Internet Sales Tax. Of course, every government wants to pick up as much tax money as possible. After all, the government’s addiction is money that they can get easily and quickly.
What will happen if cheap money is no longer there? What happens if politicians can no longer borrow money? Then the stock market collapse and the ongoing economic collapse are a fact. How you can best benefit from this is very clear to me. You build up a second income, for example through a profitable blog.