Former U.S. Treasury Secretary Lawrence Summers thinks President Donald Trump’s budget blueprint is “ludicrously optimistic” due to the “economic assumptions it embodies.”
“My observation is that there appears to be a logical error of the kind that would justify failing a student in an introductory economics course,” he wrote in his blog for The Washingon Post.
“Apparently, the budget forecasts that U.S. economic growth will rise to 3.0 percent because of the administration’s policies — largely its tax cuts and perhaps also its regulatory policies. Fair enough if you believe in tooth fairies and ludicrous supply-side economics,” the Harvard University president emeritus wrote,
“Then the administration asserts that it will propose revenue neutral tax cuts with the revenue neutrality coming in part because the tax cuts stimulate growth! This is an elementary double count. You can’t use the growth benefits of tax cuts once to justify an optimistic baseline and then again