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 are the potential consequences of overheating the economy as mentioned in the text?

How does the speaker view the relationship between tax cuts and capital investment?