The Trump administration sold its 2017 tax-cut reconciliation bill as a plan to boost American growth and American incomes by reducing, corporate taxes, transferring $2 trillion--equivalent to 10%-points of a year's GDP--of wealth to the upper class, thus increase incentives to save, and boost the flow of funds into private investment in one year. In the year after the tax cut was passed the program was projected to boost investment relative to baseline by 4%-points of national product and so boost the rate of potential output growth and thus of American incomes relative to baseline by 0.4%-points per year not by demand-side stimulus boosting spending and reducing unemployment but by supply-side stimulus boosting investment in America and America's capital stock. The program was supposed to make the U.S. 1% richer after 5 years; 3% richer after 10 years; 5% richer after 15 years, and so on.

"half the cuts came from social insurance programs." In DeLong's world, taking from the poorest is the Lord's work because every meal that a poor mother doesn't eat, every utility bill she can't pay, turns directly into more fiber optic cable and server farms.

— JW Mason (@JWMason1) 18. Dezember 2018