Goolsbee: Cutting Taxes Won't Grow GDP

The transcript discusses the potential impacts of proposed economic policies, including tax cuts and deregulation, on the US economy. It highlights skepticism about the effectiveness of these measures, drawing comparisons with past administrations. The discussion also covers the challenges posed by tariffs on manufacturing and the broader trend of declining manufacturing in advanced economies.

What is a potential downside of imposing tariffs on products shipped into the US?

• It will increase domestic manufacturing.

• It will reduce the cost of imported goods.

• It may negatively impact US manufacturing due to global supply chains.

• It will encourage more foreign investment.

How do Trump's economic policies differ from those of Reagan and Bush?

• Trump focuses more on personal income tax cuts.

• Trump emphasizes deregulation and corporate tax cuts.

• Trump's policies are identical to Reagan's.

• Trump's policies focus solely on increasing tariffs.

What was a significant factor aiding economic growth during Reagan's era?

• A decline in service sectors.

• High tariffs on imports.

• A growing and younger population.

• Increased corporate taxes.

What is a major challenge in reversing the decline in American manufacturing?

• High demand for manufacturing jobs.

• Global trend of declining manufacturing in advanced economies.

• Lack of skilled labor.

• Excessive government subsidies.

What contradiction is noted in Trump's approach to manufacturing?

• Promising to increase jobs while imposing tariffs that may harm manufacturing.

• Reducing taxes while increasing government spending.

• Focusing on service sectors while ignoring manufacturing.

• Encouraging imports while reducing exports.