With concerns growing over the sluggish growth of the U.S. economy and job market, the competing economic plans of Republican presidential candidate Donald Trump and Democratic presidential candidate Hillary Clinton were addressed in the final debate of the 2016 presidential race. Former Obama economic advisor Austan Goolsbee weighed in on the state of the economy and the candidatesâ differing solutions for the economy.
Goolsbee first addressed the current state of the economy.
âWeâve been growing, if you donât take one quarter, if you take the broader averages, weâve been growing about 2% to 2.25% for some number of years. Thatâs okay, thatâs not great, Iâm not going to say obviously that thatâs a tremendously high growth rate. It is higher than the rest of the advanced economies in the world,â Goolsbee told the FOX Business Networkâs Maria Bartiromo.
Goolsbee then explained how Hillary Clintonâs plan would lead to economic growth.
âWell, number one, the plan is not just raise taxes on high-income people, itâs use the money to make critical investments that weâve got bipartisan choruses saying the economy needs, like investing in the economic infrastructure of the country, investing in the training and education of the workforce. Those are critical investments that we canât afford to do if we donât have the money.â
According to Goolsbee, Trumpâs plan would be an expansion of the unsuccessful economic plan of President Bush.
âIf your idea is that what we need to grow is to cut high-income peopleâs taxes and deregulate than I think youâve really got to explain, and this is how the context of George Bush came up, Donald Trump is proposing to do what George Bush did, only even more of it, and it didnât work when George Bush did it. So why is it that you think that cutting high-income peopleâs taxes would give us magic bean stalk beans and start us growing back to the way we were?â
When Bartiromo questioned why American voters should expect a different result from a continuation of President Obamaâs economic policy under a Clinton presidency, Goolsbee responded âA, itâs not more of the same. B, her plan is not just to raise taxes on high-income people. Itâs to use that money to make the critical investments and then those investments are whatâs going to lead to growth.â
Goolsbee then compared that to the impact of tax cuts in President George W. Bushâs economic plan.
âIf you think that doing the opposite, what George Bush did is what Donald Trump is proposing times three, then why didnât it work when George Bush did it?â