Economist Ryding Wants Fiscal Support for Supply

The video discusses the current economic state, highlighting full employment and the need to boost supply rather than demand. It addresses the paradox of slow productivity growth despite technological advances and critiques the US tax code for encouraging overseas capital spending. The discussion shifts to labor market reforms and the limitations of monetary policy in addressing unemployment. The potential risks of injecting large tax cuts into an already near-full employment economy are examined, with concerns about overheating and rapid Fed rate hikes. The importance of directing tax cuts towards capital investment to foster genuine growth is emphasized.

What is the primary focus of the first section regarding economic policy?

• Enhancing consumer spending

• Increasing demand through monetary policy

• Reinvigorating supply and encouraging capital spending

• Reducing unemployment through tax cuts

What issue does the US tax code create according to the second section?

• It promotes inflation

• It reduces government revenue

• It increases consumer debt

• It discourages domestic capital spending

Why does the speaker suggest labor market reforms in the second section?

• To reduce inflation

• To address regional unemployment issues

• To enhance technological growth

• To increase consumer spending

What risk does Andrew Slimmon highlight regarding large tax cuts in the third section?

• Increasing unemployment

• Decreasing consumer confidence

• Overheating the economy and aggressive rate hikes

• Reducing technological advancements

According to the third section, how should tax cuts be directed to ensure legitimate growth?

• Towards enhancing import tariffs

• Towards capital investment

• Towards reducing government debt

• Towards increasing consumer spending