Economist Austan Goolsbee Skewers Trump Adviser Over “Magic Beanstalk” Theory Of Economics

Goolsbee: “If You Think That Low Corporate Taxes Are What Generates Growth, Then What Do You Say To The Fact That The Lowest Corporate Tax Rate In The World Is In Turkmenistan?”

From the September 27 edition of Fox News' Happening Now:

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JENNA LEE (CO-HOST): What new ideas is either candidate really presenting that will change our economy and bring it to a new age, if you will? Austan what new ideas does Hillary Clinton have?

AUSTAN GOOLSBEE: Well, I thought her -- the two main parts of her economic idea, on the investments side, she wants to raise taxes on high-income people and use the money to improve the education system, make college more affordable, and get debt free college for millions of Americans, and invest in the biggest infrastructure investment in good jobs since Eisenhower. I'd say those are two new ideas.

LEE: Peter, what from Donald Trump is new?

PETER NAVARRO: Well, I mean look Hillary Clinton wants to raise taxes on business and let the government invest in high risk ventures. That's not new, that's just stupid.

LEE: Ok, but what about Donald Trump?

NAVARRO: What Donald Trump wants to do is four-point thing. Basically, cut taxes, that gets growth. Cut regulation, that gets growth. Unleash our energy sector, that gets growth. And balance our trade deficit, that gets growth. So everything Donald Trump is doing works; integrated, synergistically, pushes us to 3.5 percent growth.


LEE: Okay, wait a second. The reason why I'm asking you both this question is that we heard both candidates had very typical answers for Democrat or Republican, either to cut taxes or raise taxes. And we’ve all heard that before, and so my question really is about whether or not either would produce a different result and our economy would be better -- hold one a second, Peter. Austan, Peter said quiet a bit about the fact that Donald Trump's plan would be more pro-growth. Why do you think Hillary Clinton's plan would be more pro-growth?

GOOLSBEE: I believe Hillary Clinton's plan is more pro-growth because where growth comes from is having good people with good skills, and having public infrastructure as a backdrop. If you think that low corporate taxes are what generates growth, then what do you say to the fact that the lowest corporate tax rate in the world is in Turkmenistan? And the second-lowest is in Bosnia-Herzegovina.


NAVARRO: What Donald Trump wants to do, okay -- all this debt discussion, it's like “oh, we're either going to raise taxes or cut spending to solve the debt crisis.” No, no, no, what you do is you double the growth rate and you generate trillions of dollars of revenues and, millions of jobs, and that is what Donald Trump is bringing. A different mind-set.

GOOLSBEE: Magic beanstalk beans is exactly his plan.


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