No fan of Trump's tax plan

Trump, whose economic plan is predicated on massive tax cuts for the wealthy, said: “It will grow the American economy at a level it has not seen for decades. And all of this does not add to the US deficit.” Google: 'guardian Donald Trump unveils tax plan.' Both statements are provably false.

His position is clearly supply-side economics, and here’s the problem with it. Supply-siders say: “[...]consumer spending is not the mainstay of the US economy. Investment is. Business spending on capital goods, new technology, entrepreneurship, and productivity is more significant[...]” (Foundation for Economic Education article by Mark Skousen, September 22, 2010). While true, it’s totally irrelevant.

What is relevant is that demand is the driver of our economy and always has been. Without demand, there’s nothing for the supply-side to supply. Demand has two critical parts: desire and wherewithal. Desire is easy to come by, wherewithal is not.

Wherewithal consists of funds beyond those necessary for the basics of food, clothing, and shelter.

The absence of wherewithal within the vast majority of America’s lower and middle economic classes is the reason our economy is so anemic. And it will only get worse as long as the wealthy are allowed to increase their wealth at our expense.

John H. Terrell