Economist Robert Reich warns of the "sugar high" of "Trumponomics"

“The economy is very, very fragile,” Reich warned

Published August 18, 2019 4:29PM (EDT)

 (Getty/Chip Somodevilla)
(Getty/Chip Somodevilla)

This article originally appeared on AlterNet. alternet-logo

Economist Robert Reich, who served as secretary of labor under President Bill Clinton in the 1990s, has been a blistering critic of the GOP corporate tax cuts passed in late 2017 — often arguing that they have done precious little for the American middle class and offer no real long-term benefits for the United States economy. And with the U.S. quite possibly heading into a recession, Reich reiterated his criticisms of President Donald Trump’s economic policies during a Wednesday appearance on MSNBC’s “The Beat With Ari Melber.”

The 73-year-old Reich told host Melber that the Republican-sponsored Tax Cuts and Jobs Act of 2017, which Trump enthusiastically signed into law and continues to brag about, has given the markets a “sugar high.” But Reich stressed that “sugar highs are temporary.”

“The economy is very, very fragile,” Reich warned. “It’s not just the stock market. I mean, we know that nothing trickled down. That trickle-down tax cut actually was a huge mistake…. There was no trickle down; it only trickled up. And this kind of skepticism about Trumponomics is going to be — very, very soon — widespread.”

Reich added, “I think the chances of a recession are now over 50% on Election Day.”

The author/economics professor also asserted that Trump’s trade policy with China could have dire consequences.

“This trade war with China — not only is there no strategy, but it also is extremely dangerous,” Reich stressed to Melber. “(These are) the largest and second-largest economies in the entire world, and to have them going at each other is dangerous for the whole world economy.”

When it comes to economic policy, Reich warned, Trump is erratic and unfocused.

“This is a president who not only doesn’t know detail, but he lies about the details he does know,” Reich told Melber. “So no, there’s not going to be any focus. There’s no economic strategy.”


By Alex Henderson

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