SMU economist: “Trump is a good old fashioned Keynesian” Al Niemi says Trump’s biggest opponents in Congress will be Tea Party Republicans worried about exploding the deficit.

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Dec 15, 2016 No Comments ›› admin

By Lynn Woolley

Al Niemi, dean of SMU’s Cox School of Business, expects the economy — under Trump – to grow by 3 percent in 2017. That’s a lot better that the anemic GDP growth under Obama. He says Trump will accomplish this through liberal means – pushing for massive infrastructure spending while still cutting taxes.

Al Niemi

Al Niemi

Niemi says Trump’s biggest opponents in Congress will be Tea Party Republicans worried about exploding the deficit.

But Niemi doesn’t appear worried. He says he’s seen three presidents institute major tax cuts – Kennedy, Reagan, and George W. Bush – and in each case, he says federal revenue increased 50 percent or more. He says:

“This is a good old fiscal liberal Democrat stimulus package. And I think it’s got a chance.”

Maybe it does. Obama’s stimulus failed because he gave it away to public unions. Maybe Trump will handle it differently.

Trump is going to make a difference in major ways.

Trump wants to spend $1 trillion on infrastructure. We don’t know how he will spend it – but we know Obama screwed up his stimulus. Trump could spend on the interstate highway system and still be constitutional – or he could send money to states and let them do it. We await details.

On education, Trump wants to expand school choice – something evident through his appointment of Betsy DeVos has head of the Education Department. Our schools are in trouble –- as evidence by the poster flap in Killeen where diversity seems more important to the School Board than fixing three failing high schools. Hopefully, DeVos can steer schools towards choice – then shut down the department of Education.

John Maynard Keynes

John Maynard Keynes

Trump also promises to deregulate – and, again, his cabinet appointments point to the seriousness of the promise. His choice of Scott Pruitt for EPA head especially telegraphs that Trump wants this country to get back to doing business and succeeding – and creating jobs.

All we are saying is give Trump a chance.

I am no fan of John Maynard Keynes. But maybe Keynes’ ideas would work better if implemented by someone other than a left-leading Democrat trying to save the world from climate change. Someone like Trump. Maybe not. But outside the stimulus, much of Trump’s ideas are boilerplate conservative.

He’s gone against conventional wisdom so many times – and been right – that I’m willing to let him try it. The goal is to make America great again, and I’m on board with that.

lynn@BeLogical.com

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