Morganlander, Crise on Tax Reform and Growth

The video discusses the skepticism surrounding a proposed tax reform plan, highlighting its lack of detail and questioning its ability to sustainably boost US GDP growth. Historical examples, such as the Homeland Investment Act, are used to illustrate how tax cuts often lead to stock buybacks rather than productivity improvements. The discussion also covers market strategies in response to the tax plan and projects US economic growth, considering potential deficits and the role of the Freedom Caucus.

What is the main criticism of the proposed tax plan in terms of its impact on GDP growth?

• It will significantly increase productivity.

• It will primarily result in stock buybacks and dividends.

• It will reduce the labor force growth.

• It will lead to a permanent 3% GDP growth.

Which investment strategy is suggested in response to the tax plan?

• Focus on high-risk stocks.

• Sell the dollar and buy Treasurys.

• Avoid financial markets entirely.

• Invest in long-term bonds and safer investments.

What is one potential short-term benefit of the tax plan mentioned in the discussion?

• Depreciating capital investment in one year.

• Permanent GDP growth of 3%.

• Increased labor force participation.

• Reduction in stock buybacks.

What is the expected US growth rate in 2018 according to the discussion?

• Between 1% and 1.5%

• Above 4%

• Between 2.25% and 2.5%

• Between 3% and 3.5%

What is the role of the Freedom Caucus in the context of the tax plan?

• They oppose a significant increase in the deficit.

• They advocate for a 5% GDP growth target.

• They are indifferent to the tax plan's impact.

• They support increasing the deficit to boost GDP.