Conservative economist Stephen Moore lambasted President Obama’s performance on the economy -- claiming the Obama administration accumulated too much debt and generated too little economic growth -- in an op-ed championing Donald Trump’s plan to cut taxes for the wealthy and corporations, which will drive up even more debt and is virtually guaranteed not to grow the economy.
Moore claimed in a May 10 op-ed published by USA Today that Donald Trump's tax plan is “designed to supercharge growth” and break with years of supposedly lackluster “Obamanomics.” He chided Obama for presiding over “the weakest economic recovery in 75 years” and accumulating “almost $8 trillion” in national debt, even though the annual deficit has actually been decreasing since 2011, the unemployment rate has been cut in half since the president’s first year in office, and the economy has created 14.2 million jobs since the labor market bottomed out in early 2010. From USA Today:
It’s no mystery why. Obamanomics has given us the weakest economic recovery in 75 years. Wages are flat or falling for all but those in the top 10%. And our national debt has risen by almost $8 trillion in seven years.
The Trump tax plan is designed to supercharge growth, much like President Kennedy did in the 1960s and President Reagan did in the boom years of the 1980s with their tax reductions.
The biggest deficit we need to urgently fix is our growth deficit. We must pump up our GDP growth from the anemic 1% rate of Obama’s past six months up to a sustained 4% under Trump. Just 2% faster growth reduces our budget deficit over a decade by more than $5 trillion.
Liberal economists pout that this growth is impossible for America, but that’s what people said in the miserable 1970s. Reagan (and JFK before him) proved that with the right policy incentives that get government off the back of business, a new era of prosperity is just around the corner.
Moore advocated for Trump’s tax plan as an alternative to Obama’s economic record, a plan that even the most generous estimates show will produce larger budget deficits and greater debt accumulation than witnessed during the Obama administration. The nonpartisan Tax Policy Center (TPC) and the conservative Tax Foundation each scored Trump’s tax plan and found that it would explode the deficit by $9 to $12 trillion over the next decade, on top of $9.4 trillion in projected deficits at current spending levels. The Tax Foundation’s analysis further claimed that Trump’s tax plan would boost investment and wage growth while creating up to 5.3 million new jobs, but those figures come from a so-called “dynamic” scoring model that has been criticized for overestimating the stimulative value of tax cuts.
Moore’s claim that Trump’s tax plan would create 4 percent economic growth is reminiscent of claims by failed Republican presidential candidate Jeb Bush, which experts quickly dismissed as “nonsense” and “wizardry.” According to a September 2014 report from the Brookings Institution, tax cuts do not necessarily create economic growth and they can even discourage growth by undermining economic incentives to invest. A September 2012 report from the Congressional Research Service (CRS), which was suppressed by Senate Republicans, similarly found no correlation between tax cuts and economic growth, but it did caution that tax cuts for high-income individuals “appear to be associated” with rising inequality.
Moore has a long and well-documented history of distorting facts on the economy. Nobel Prize-winning economist and New York Times columnist Paul Krugman, who has spent years documenting Moore's repeated failures in economic policy, recently slammed the right-wing commentator’s “impressive lack of even minimal technical competence.”